EMED Mining is pleased to announce that its wholly owned operating subsidiary EMED Tartessus (“EMEDT”), the holding company for the Rio Tinto Copper Project (“Proyecto Rio Tinto”), has received during a meeting with regional authorities at the Rio Tinto Mine the formal communication from the Mining authorities of the Government of Andalucía (“Junta de Andalucía”) that the Resolution containing the granting of the Mining Permit for the Project has been signed. This global Mining Permit includes the approval of the Restoration Plan.
The granting of the Mining Permit and approval of the Restoration Plan are the last significant regulatory approvals required to be obtained by EMEDT before normal mining and processing operations can commence at Proyecto Rio Tinto during the third quarter of 2015.
During the first and second quarters of 2015 the Company will continue with construction and repair activities that have been ongoing at the Project since last summer. There are over 200 full-time employees together with numerous contractors working on site focussing mainly on plant and infrastructure refurbishment. The Company is targeting commissioning to commence during the third quarter of 2015.
In addition, selected mining and drilling contractors are working to optimise the production plan for the first five years of mining and preparing to start first mining activities during the second quarter of 2015.
Mining Permit and Restoration Plan Approval
The granting of the mining permit includes, as required by law, the approval of the Restoration Plan submitted by the Company. One of the conditions established by the Mining Permit is the placement by the Company to the Junta de Andalucía, within a stipulated period, of a Restoration Bond of €13.1 million. The Company is working with financial institutions to finalise arrangements for the bond.
The full content of the final Resolution containing the project approval will be sent to the company following the normal administrative procedure. It is expected that the Resolution will contain the project execution conditions to be fulfilled by the Company that are all in line with applicable Spanish laws.
The Company remains in close contact with its three key shareholders plus other key parties in order to finalise the funding of the Phase 1 development enabling the Company to achieve a 5Mtpa base case production as well as formally analysing the best options for a Phase 2 expansion that could take the planned production beyond the original 9 Mtpa feasibility case.
Alberto Lavandeira, CEO of the Company commented: “The approval of the Mining Permit is a major historic milestone for Proyecto Rio Tinto and paves the way for commissioning to commence in the third quarter of this year. On behalf of the Board of Directors I want to congratulate the team at Proyecto Rio
Tinto who have undertaken a significant amount of work to achieve this key milestone. I would also like to thank the key shareholders for their constant and loyal support. The Company continues to work with its major stakeholders to finalise financing arrangements for the Phase 1 development of Proyecto Rio Tinto as well as analysing the best expansion options and I look forward to providing further updates in due course.”
23 January 2015
EMED Mining Roger Davey/Alberto Lavandeira +34 959 59 28 50
Canaccord Genuity Neil Elliot/Mark Palmer +44 207 523 8000
Fox-Davies Capital Oliver Stansfield +44 203 463 5061
Walbrook PR Nick Rome +44 207 933 8783
For further information on the Company's activities, visit www.emed-mining.com.