Atalaya Mining Regulatory News (ATYM)

AIM: EMED 15 March 2011

Further Progress in the Permitting Process for the Restart of the Rio Tinto Mine

EMED Mining Public Limited ("EMED Mining" or the "Company") is pleased to report that the Junta de Andalucía ("Government") has announced that through its active enquiry and intervention it has satisfied itself as to the legality of the transmission of the Rio Tinto mineral rights to EMED Tartessus, the Company's wholly-owned subsidiary. This has thereby unblocked the further process of granting the mineral rights at the Rio Tinto Mine and obtaining permitting approvals for the restart of the mine.

The establishment of the applicant's legal accreditation for the transmission of "administrative" mineral rights is the first step of a procedure regulated by the mining legislation. The transmission of the administrative rights will enable the process to formally progress to the evaluation of the technical and economic viability of the mining project and the technical and financial competency of the applicant.

The Company looks forward to discussing this latest approval with the Government so that it can duly inform shareholders and other stakeholders of the effect, if any, on the anticipated program and timetable for the permitting process and proposed restart of the project.

In addition, the Government has formally resolved that the Company's wholly-owned subsidiary EMED Tartessus should assume formal responsibility for the maintenance and operation of the tailings dams at the Rio Tinto Mine. 

As previously reported, it is important for reasons of public safety, that these facilities be responsibly managed as a whole despite 66% of the dams having been acquired by non-mining companies prior to the Company's arrival. Therefore the Company welcomes the constructive initiative of the regulatory authorities and looks forward to carrying out recommended remedial works as soon as we have fully clarified tenure and land access. In the meantime, EMED Tartessus will continue to carry out day-to-day maintenance as it has done for the past four years.

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