Wed Apr 6, 2011 9:13am GMT
* Exploration to take 6-8 months
* WISCO paid $100 million for exploration permit
ANTANANARIVO, April 6 (Reuters) - Wuhan Iron & Steel Co (WISCO), China's third-largest steelmaker, plans to start exploratory drilling for iron ore in Madagascar's Soalala region at the end of May, officials said.
WISCO Madagascar -- one of many foreign firms keen to develop the Indian Ocean island's mineral resources -- paid $100 million for exploration permits in 2010.
"Our investments are made in stages, depending on the results of the survey. The investment decision is expected in six to eight months, then will come the construction phase, which will last four years," said WISCO Madagascar's chief executive, Jun Yuan Lou.
"The actual operation should start in five years," he told a news conference late on Tuesday, when signing an environmental impact study and exploratory drilling agreement with the National Environment Office (ONE).
Exploration in Madagascar, which has oil, cobalt, nickel, gold and uranium deposits, has been hampered by a political crisis since incumbent President Andry Rajoelina seized power in March 2009.
As this project proceeds, "Environmental assessment studies, including the various public consultations will begin this week," said ONE's chief executive, Jean Chrysostome Rakotoary.
An environmental permit will be issued at the conclusion of the studies, which will take at least 45 days, and after the company pays ONE $350,000, he said.
The island's political crisis forced Madagascar Oil last month to declare force majeure on four of its oil blocks to safeguard its exploration rights after failing to reverse a state directive to acquire them. (Reporting by Alain Iloniaina; Editing by Helen Nyambura and Jane Baird)
* Exploration to take 6-8 months
* WISCO paid $100 million for exploration permit
ANTANANARIVO, April 6 (Reuters) - Wuhan Iron & Steel Co (WISCO), China's third-largest steelmaker, plans to start exploratory drilling for iron ore in Madagascar's Soalala region at the end of May, officials said.
WISCO Madagascar -- one of many foreign firms keen to develop the Indian Ocean island's mineral resources -- paid $100 million for exploration permits in 2010.
"Our investments are made in stages, depending on the results of the survey. The investment decision is expected in six to eight months, then will come the construction phase, which will last four years," said WISCO Madagascar's chief executive, Jun Yuan Lou.
"The actual operation should start in five years," he told a news conference late on Tuesday, when signing an environmental impact study and exploratory drilling agreement with the National Environment Office (ONE).
Exploration in Madagascar, which has oil, cobalt, nickel, gold and uranium deposits, has been hampered by a political crisis since incumbent President Andry Rajoelina seized power in March 2009.
As this project proceeds, "Environmental assessment studies, including the various public consultations will begin this week," said ONE's chief executive, Jean Chrysostome Rakotoary.
An environmental permit will be issued at the conclusion of the studies, which will take at least 45 days, and after the company pays ONE $350,000, he said.
The island's political crisis forced Madagascar Oil last month to declare force majeure on four of its oil blocks to safeguard its exploration rights after failing to reverse a state directive to acquire them. (Reporting by Alain Iloniaina; Editing by Helen Nyambura and Jane Baird)
Posts
No comments:
Post a Comment