LONDON (Alliance News) - South African pig iron developer Ironveld PLC Wednesday said it has submitted a tax allowance incentive application to the South African government for its smelter at the project, which, if approved, would give it an estimated GBP2.8 million allowance it would plough back into the development of the smelter.
The allowance is designed to support greenfield investments and offers support for capital investment and training.
Ironveld is developing a pig iron project in the Bushveld Complex in Limpopo Province, South Africa. It has prospecting rights on seven adjacent farms, and intends to mine iron ore as a feedstock for its own pig iron plant. It is planning to start production at the planned 15 megawatt smelter at the site in late 2015.
In its statement, Ironveld said it hopes to have a decision on the tax allowance from the South African Department of Trade and Industry in early September.
"This is another important stage for the Company as we work towards progressing our pig iron project. This incentive would enhance the overall project's already favourable economics and further demonstrate industry's and the Government's confidence in it, promoting its future development," Chief Executive Peter Cox said.
Ironveld shares were down 1.5% at 7.76 pence Wednesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Ironveld (IRON)