Last checked at 21 Jun 2012 10:46
Hambledon Mining Plc
("Hambledon" or "Company")
Update on the Tailings Dam 3 Fines
Hambledon Mining plc ("Hambledon Mining" or "Company")(AIM: HMB), the Kazakhstan gold mining company, today announces an update to the fines imposed by the courts of Kazakhstan in response to a minor breach at tailings dam 3 at the Company's Sekisovskoye gold mine on 30 October 2011.
After the incident, the court investigator imposed a series of fines totalling USD 3.8 million, which has been paid. The Company has also entered into an agreement to carry out various social development projects which are largely complete. The Company also committed to improve waste handling facilities which are anyway part of its infrastructure development and are within the capital budgets necessary for the development of Sekisovskoye. The quantum of fines was based on certain Soviet-era pollution calculations. The Company believed the level of fines to be too severe and therefore immediately appealed against the amount with the aim of obtaining at least partial repayment of the fines paid.
Recent Developments
On 3 May 2012 the General Prosecution Department of the Republic of Kazakhstan filed a claim to the Supreme Court of the Republic of Kazakhstan asking for a cancellation of the decision by the Specialised Inter-district Economics Court of East Kazakhstan dated 18 January 2012, which decided that Hambledon Mining had committed an offence.
On 30 May 2012, the Supreme Court of the Republic of Kazakhstan agreed to hear this claim and has upheld the Company's disagreement over the amount of the fines to be paid, the alleged damage caused and whether any criminal offences have been committed in connection with the incident. The case has been sent to the court of primary jurisdiction (Inter-district Economics Court of East Kazakhstan) to be reviewed by a different judge.
As previously advised, the legal regime in Kazakhstan lacks clarity in certain areas and the appeal process required Hambledon to simultaneously work its way through various levels of courts and make the payment of fines and penalties (which have already been paid) and which may be returned to the Company on the basis of any successful appeal by the Company.
The Company will make further announcements when there are any material developments in connection with the above court actions.
Tim Daffern, Chief Executive Officer of Hambledon, commented today:
"I am pleased by the Supreme Court's decision to support our appeal to oppose the level of fines, review the amount of alleged damage caused by this minor leak and also whether the Company is in fact criminally liable for the incident. I hope to be able to update shareholders with a further positive developments in relation to the fines in not too distant future."
Enquiries;
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
Copyright Business Wire 2012