Last checked at 9 Dec 2013 11:28
9 December 2013 | For Immediate Release |
Bushveld Minerals Ltd
("Bushveld" or the "Group")
Memorandum of Understanding with China Railway No. 10 Co. Ltd
Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with projects in Africa, announces it has entered into a Memorandum of Understanding ("MoU") with China Railway No. 10 Co. Ltd ("CREC 10") regarding the development of its P-Q Iron Ore Deposit in South Africa
CREC 10 is a subsidiary of China Railway Group Limited ("China Railway"), a Fortune 500 company and one of China's largest state-owned infrastructure development companies as well as one of the largest customers to Chinese steel mills. China Railway has participated in the construction of a total length of approximately 64,000 kilometers, more than two thirds of total operating length of railway lines constructed in the People's Republic of China. China Railway has also been involved in the construction of more than 5,670 kilometers of bridges, more than 4,700 kilometers of tunnels (excluding subways), 3,400 kilometers expressways and 566 kilometers of metropolitan railways. Furthermore, China Railway has taken more than 230 overseas projects including railway, expressway, highway, bridge, tunnel, building construction, dredging, airport and municipal work projects in more than 55 countries and regions globally.
The MoU provides for CREC 10 and Bushveld to cooperate on a joint pyro-metallurgy test work programme with a view, subject to positive outcomes from the test work, to a potential investment, partnership for off-take contracts and/or joint infrastructure development where favourable.
The joint test work programme, to be funded equally by Bushveld and CREC 10, will be conducted in China by CREC 10's preferred pyrometallurgy consultant. The programme is to commence in January 2014 and is expected to run for several months. The results of which will be announced to the market as they are returned. Conditional on a positive outcome of the pyrometallurgy test work, Bushveld will give CREC 10 preference in any investment deal into the P-Q Iron Ore Deposit.
Fortune Mojapelo, CEO of Bushveld, said, "I am very pleased to make this important announcement regarding the establishment of a development relationship between Bushveld and CREC 10. Based on the pyrometallurgy test work Bushveld has already undertaken, I am optimistic of a positive outcome to this process and look forward to the joint work programme and taking this relationship to the next stages. Positive results from this process, combined with the large scale and low-cost mining nature of Bushveld's P-Q deposit would position this project favourably in the global iron ore and steel industry and enhance the scope for the strategic partnerships we seek to support the accelerated development of this important project."
Nicolas Song, Deputy General Manager for CREC 10 commented: "We are delighted to have signed the MoU with Bushveld Minerals. This is an important first step in what we hope is a long term relationship. We look forward to working with the Bushveld management."
Enquiries: info@bushveldminerals.com
Fortune Mojapelo | +27 (0) 11 268 6555 |
Bushveld Minerals | |
Jonathan Evans | +44 (0) 20 3463 5000 |
Fox Davies | |
Nuala Gallagher / Jos Simson | +44 (0) 20 7920 3150 |
Tavistock Communications | |
Stéphanie Leclercq | +27 (0) 83 307 7587 |
Tielle Communications |
Notes to the editor
Bushveld Minerals Limited is a mineral development company with a portfolio of iron, tin and coal assets in Southern Africa. The Company owns the Bushveld Iron Ore Project and Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa. In addition, Bushveld has a controlling 54.39% interest in ASX Lemur Resources that owns the Imaloto coal project in Madagascar.
Bushveld was admitted to the AIM Market of the London Stock Exchange in March 2012.