Last checked at 14 Jun 2012 15:53
14 June 2012
Hambledon Mining Plc
("Hambledon" or "the Company")
Update on export of doré from Kazakhstan
Hambledon Mining plc (AIM: HMB), the Kazakhstan focussed gold mining and development company, today provides an update concerning the refining and precious metals export arrangements in Kazakhstan.
Overview of the refining and export law in Kazakhstan
As detailed in the circular to shareholders dated 1 February 2012, the Government of Kazakhstan implemented new laws which came into force on 1 January 2012 which required the Company's production of gold and silver doré to be processed by a Kazakhstan refiner, rather than by the Company's existing refiner, Metalor, which is based in Switzerland. There was also a requirement for all such refined gold and silver (all precious metals) to be sold to the National Bank of Kazakhstan.
At this time, the Company discussed these changes with The Industrial Committee of the Ministry of Industry and New Technologies of the Republic of Kazakhstan ("MINT") and reached formal agreement that the Company could continue to refine its gold and silver doré outside the Republic of Kazakhstan until 1 January 2013, notwithstanding the implementation of this new legislation.
New developments
Following constructive talks, Hambledon has received official advice from the MINT that the export of doré from the Company's business at Sekisovskoye will be permitted until Q4, 2013. During this period Hambledon will continue to export doré for refining and sale via its contracts with Metalor. This will ensure that the working capital arrangements currently in place are maintained.
MINT has advised that a detailed feasibility study for the construction of a Kazakhstan refinery is well advanced and that initial ground works at the chosen site have commenced. The Kazakhstan authorities state that the commissioning of the refinery is due in Q4, 2013.
Tim Daffern, Chief Executive Officer of Hambledon, commented today:
"This good news highlights the positive and pragmatic relationship Hambledon has with the Kazakhstan authorities, and specifically MINT ."
For further information please contact:
HAMBLEDON MINING:
Telephone +44 (0)207 233 1462
Charles Zorab
FAIRFAX I.S. PLC (NOMAD AND BROKER):
Telephone +44 (0)207 598 5368
Ewan Leggat/Katy Birkin
TAVISTOCK COMMUNICATIONS:
Telephone +44 (0)207 920 3150
Ed Portman/Jos Simson