Bumi Resources Minerals gets exploitation permit in Mauritania
Thursday, January 19 2012 - 02:46 AM WIB
PT Bumi Resources Minerals Tbk (BRMS) reported that it had secured the Exploitation Permit for its iron ore concession in Mauritania, West Africa on January 13th, 2012.
The company said in Jakarta on Wednesday that such permit allowed BRMS to immediately commence exploitation activities within the 990 km square area of iron ore concession.
Based on the regulation in Mauritania, all concessions that have received exploitation permits are required to divest, at no price, 10% stake of the respective concession to the Government of Mauritania prior to their commercial productions. In addition, the same regulation gives the Mauritanian Government the right to buy another 10% stake of these concessions for prices agreed by both sides.
"We are happy to have secured the necessary exploitation permit early this month. Our Company is on track to commence first iron ore production in Mauritania between March and May 2012. Conservatively, first production in 2012 is estimated at 600 thousands ton. This is expected to ramp up to above 1 million ton of ore per year in 2014 onward,? said Kenneth Farrell, the CEO of BRMS.
Editing by Benget Besalicto Tnb.