Last checked at 2 Jun 2011 07:00
AIM: EMED TSX: EMD
2 June 2011
RESPONSES TO GOVERNMENT DEPARTMENTS
FOR RESTART OF RIO TINTO COPPER MINE
EMED Mining Public Limited ("EMED Mining" or "the Company"), the AIM-quoted and TSX-listed mining exploration and development company, announces that it has now responded to all requests made by the Junta de Andalucía ("Andalucían Government") regarding the restart permitting of the Rio Tinto Copper Mine ("the Project").
As previously announced, the Department of Culture and Heritage has already issued its approval (see announcement dated 24 May 2011). The two remaining principal regulatory authorities of the Andalucían Government - the Department of Environment (including the Water Authority) and the Department of Industry will now consider the Company's responses to their requests, summarised below:
·; Reviews of project costs re-affirm that the Base Case projections remain reasonable;
·; Independent reviews have re-affirmed the suitability of the Company's processing plans for optimising concentrate quality. The Company has volunteered to conduct an R&D program to investigate future industry developments to improve on-site processing technology, tailored to the Rio Tinto ore and other deposits in the region;
·; The Company has offered to refine its water management plans in due course to align them with the Government's recently announced intention to introduce a long term hydrological plan for the Odiel River;
·; The Company has advised the Andalucian Government that it is prepared to consider assuming responsibility for the rehabilitation of additional land outside the current project area that could also play a role in potential future expansions. This proposal is conditional upon a detailed analysis of environmental requirements and must not delay current permitting.
In addition to this, the Company confirmed its intention to:
·; Commence an exploration program as soon as practicable after the grant of Administrative Standing. This will be targeted at the significant potential for increasing mine life and supporting future operational expansions; and
·; Offer an enlarged social protection package to employees within industry norms.
EMED Mining is continuing the engineering studies needed for project tenders, in order to advance negotiations with financiers and the planning for personnel selection and training for the large workforce needed for the project re-start and operations. However, no commitments can be made without sufficient progress on permitting. The Company has proposed an agreement whereby the Junta grants Administrative Standing now subject to a number of conditions so that the formal review processes continue while re-start preparations are underway.
Harry Anagnostaras Adams, Managing Director of EMED Mining, commented:
"The Company has proposed what it considers a "win-win approach" with the Government: to proceed with our already presented and robust project and, at the same time, to effectively plan extra responsibilities requested by the Government where feasible to the Company.
"The recent election results show across-the-board community and political support for the Company and the project. The Company has done all it can - to check that its project submissions of 2010 have stood the test of time, and to accommodate requests from the Government where feasible.
"We have also committed to start significant exploration activities as soon as possible so that the project life can be extended and production expanded wherever possible."
Enquiries
EMED Mining | Harry Anagnostaras-Adams | +357 9945 7843 |
RFC Corporate Finance | Stuart Laing | +61 8 9480 2500 |
Fox-Davies Capital | Simon Leathers | +44 203 463 5022 |
Fairfax I.S. PLC | Ewan Leggat/Katy Birkin | +44 207 598 5368 |
Bishopsgate Communications | Michael Kinirons | +44 207 562 3350 |
Proconsul Capital | Andreas Curkovic | +1 416 577 9927 |
About EMED Mining Public Limited
EMED Mining is at the forefront of the revival of responsible mining in Europe with several projects at different stages of development across the continent.
EMED Mining is focused on two key projects:
Copper in Spain: The Company's 100%-owned flagship project is the historic Rio Tinto Copper Mine (also known as Proyecto de Rio Tinto) near Seville, Spain. EMED Mining is currently permitting the restart of operations with copper production planned to restart during 2012.
Gold in Slovakia: EMED Mining discovered the Biely Vrch porphyry gold deposit in Central Slovakia and is currently advancing the planning and permitting necessary for development.
For further information on EMED Mining and technical details on the Company's projects, please refer to www.emed-mining.com.