RE: Court updates9 Jul 2020 23:07
earlier in the week we had a new poster who was keen to alert us to the concerns over the tailings dam so I thought it worthwhile to post along with and the response from obs that not only reflects the research he has taken but, to be honest flips the argument in the favour of the project commencing ASAP. (great work obs)
https://www.lse.co.uk/profiles/sclarke66/
06 Jul 2020 23:59
Here ( https://sei.anm.gov.br/sei/modulos/pesquisa/md_pesq_documento_consulta_externa.php?9LibXMqGnN7gSpLFOOgUQFziRouBJ5VnVL5b7-UrE5T1LZRvb3mIYowD2KXHyvp1GDwaXqiMFU_pSf0cnEPXtPjMYMWaBYu9rf-xATaRUuk-Cy3XSuSrwr82Mp03Vt8_ ) is a report by the tailings authority in Brazil that basically says that as per their visit to site, the Zamin’s tailings dam has been left abandoned for 4 years. The management of DEV/Zamin has failed to file the dam stability reports for 2017, 2018, 2019 and 2020. During a site visit in 2019 this was verified and the dam was deemed to pose a high threat to the environment and they recommended to the state prosecutor to cancel the mining concessions. If that happens the KDNC project as it stands would be worthless.
"It is a dam with a high CRI (risk category) and medium DPA (potential damage), abandoned, without any monitoring of its conditions, where there is no technical report guaranteeing that the structure is stable, so in the face of such conditions the collapse of that dam can occur, which can cause a great environmental impact in the region and even loss of human lives, since there is no flood map of the area downstream in case of rupture that shows what will be affected in this scenario.” The report further says: “The structure is banned and the company fined for failing to deliver a Declaration of Stability, however, such measures are insufficient to ensure the safety of the dam, considering that there is no response from the company to Zamin Amapá Mineração SA, nor from his legal representatives who are not found at the address registered in the company's mining register, causing the return of all letters and other correspondence.”
It concludes and recommends that appropriate measures be taken, aiming at declaring the expiry of the mining concession, considering the abandonment of the mine and the dam as verified in the inspection.
Publicly available information is: http://www.anm.gov.br/assuntos/barragens/boletim-semanal-de-barragens-de-mineracao/boletim-semanal-2020-06-08-v5
Obs response:
@SClarke66, if you are for real: we've got this covered - take a read of our corporate presentation for the design of the dam and also 14 April 2020 RNS which states what part of the realised $10m net is for: "...and to start maintenance and monitoring of the current tailing dam facilities (~ US$ 6 m) ..."
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