Monday, 23 Jan 2012
It is reported that PT Bumi Resources Minerals Tbk, a non-coal mining unit of coal giant PT Bumi Resources Tbk is set to start iron ore production in Mauritania after securing exploitations permit from the West African government.
Mr Kenneth Farrell CEO of Bumi Minerals said the concession is expected see exploitation activities start between March and May this year, with an output of 600,000 tons of iron ore per year.
He said that Bumi Minerals is to boost output to 1 million tons of ore by 2014 in 990 square kilometers area of iron ore. He added that “We were happy to obtain the necessary exploitation permit early this month, adding that the permit was obtained earlier on January 13.”
Bumi Minerals file submitted to the Indonesia Stock Exchange said “In this case, the government of Mauritania has exercised its right. Therefore, its ownership in Tamagot Bumi is 20%.”
Based on the regulation in Mauritania, all concessions that have received exploitation permits are required to divest a 10 percent stake of the respective concession at no cost to the local government prior to commercial productions.
The same regulation also gives the Mauritanian government the right to buy another 10% stake in these concessions for prices agreed by the buyers and sellers.
(Sourced Thejakartapost.com)
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