Atalaya Mining Regulatory News (ATYM)

24 Nov 2009 07:00



AIM: EMED    24 November 2009

   RIO TINTO MINE START-UP - PERMIT PROCESSES MOVE FORWARD

EMED Mining Public Limited ("EMED Mining" or "the Company") is pleased to announce progress on its plans to restart the Rio Tinto Mine ("Proyecto Rio Tinto" or "PRT") in Spain.

Since the last update on 30 September 2009, the Junta de Andalucia (the Government) has communicated its support within the legislative framework for PRT at public forums and the Company has been asked to prepare and submit all remaining plans for regulatory approval. 

The Company (via its wholly-owned subsidiary EMED Tartessus SL) and the authorities have refined the approach to the permitting process as follows:

Continued processing of the recently submitted Environmental Impact Assessment ("EIA") with the public consultation period and other requirements to be addressed in due course;

Concurrent consideration of the administrative transmission of the Company's mineral rights and the operating permit, in compliance with changed environmental regulations introduced in the past few months; and

Preparation and lodgment for approval of the next stage of detailed plans for starting, operating and rehabilitating the mine, plant and waste disposal infrastructure by the Company and external experts.

These procedural matters have been the focus of the permitting process for some  months and accommodate recently-introduced regulatory changes for processing EIA's under European Union guidelines along with the specifics of this particular project. It is pleasing that this approach also serves to preserve the objective of commissioning startup by the end of 2010 and for production to settle down in 2011.

Background

The regulatory co-ordination for this project and most relevant regulatory functions are conducted by the Government via its provincial delegation in the City of Huelva and some delegates in Andalucia's Capital, Seville. There is also consultation with technical experts in Madrid. 

The Company has, until now, not been cleared to proceed with the preparation and submission of the remaining set of detailed operation and rehabilitation plans along with stipulated independent reviews. This phase can now proceed. A checklist of tasks to fulfil these regulatory requirements is being documented and will be summarised for shareholders in due course. It will include many independent verification tasks such as geotechnical drilling to check the integrity of tailings dam walls, the feasibility of proposed improvements to the tailings disposal system and detailed costings for the removal of asbestos-sheeting from buildings along with other proposed improvements to the site prior to start-up.

The regulatory process for settling compensation for landholders is intended to be the normal approach as applied to other similar situations. Neither this nor any other third party issues need impede the timetable. 

EMED Mining's Managing Director, Mr Harry Anagnostaras-Adams said "The support of the Government and of the communities is much appreciated. We are pleased to now move to the next stage in the regulatory framework of planning Proyecto Rio Tinto's low-risk transition to a 21st Century operation. Risk mitigation is the key to this project which has large reserves and deserves a long term future."

Enquiries

Notes to Editors: About EMED Mining Public Limited

EMED Mining was admitted to trading on AIM in May 2005. The Company is committed to responsible development of metal production in Europe, with an initial focus on copper and gold. 

The Group's region of interest are the tectonic belts spanning across Europe and over to the Middle East. The strategy is to evaluate exploration and development opportunities in several jurisdictions throughout this quality mineral belt and to promote sustainable development practices through the implementation of European Union and other international standards. The Company strictly implements its Environmental & Community Policies which includes:

Integrating environmental management into its business, planning and reporting processes;

Promoting a strong environmental ethic throughout the Company and the community;

Complying with, as a minimum, all applicable local and European Union laws and regulations; and

Communicating with community stakeholders in a responsible and transparent manner.

EMED Mining has now established a strong position in the following selected zones:

Completed base case plans for operating a 14-year mine plan to extract ore reserves and to invest in drilling and other activities with a view to expanding and improving the project;

Acquired 100% of the project (the mine, its associated land and the associated mineral rights along with the plant and its associated land) from vendor company Mantesur Andavalor via (now) wholly-owned subsidiary EMED Tartessus SL;

Settled with the vendor company's principal creditor MRI Group which is now a shareholder of EMED Mining and has been appointed sales and marketing agent for the project;

Terminated all involvement in the project by previous controllers of the vendor company and commenced legal proceedings for their non-performance and criminal offences. A similar stance has been taken by MRI Group which is supporting EMED Mining's plans. EMED Mining group is not involved in any litigation other than what it has initiated; 

Established support for the Company's plans from the communities and the Government, summarised in a statement approved by provincial Heads of Government and ruling Socialist Party on 30 September 2009: "The Junta de Andalucia encourages and supports the plans of EMED Tartessus (a wholly-owned subsidiary of the Company) to start up production at PRT subject to full due diligence and regulatory compliance in all respects"; and

For further information on the Company's activities, visit www.emed-mining.com or www.emed.tv