Subsoil Use Contract Changes Ratified
02.03.2011 SUNKAR RESOURCES PLC
("Sunkar" or the "Company")
Subsoil Use Contract Changes Ratified
Sunkar Resources plc (AIM:SKR) is pleased to announce that the Government of the Republic of Kazakhstan has ratified the changes to the Company's Subsoil Use Contract ("SUC") and work programme commitments to develop the Chilisai phosphate deposit which were previously announced on 17th June 2010.
The major changes are (a) a reduction in the Company's obligations on ore extraction, and (b) a revision to the commitment to meet associated cumulative development expenditure of $115 million by 2014. This latter commitment has now been extended to 2020.
Serikjan Utegen, CEO of Sunkar, commented:
"The changes to the SUC that have been ratified align the development of the mine with the Company's timeframe for the development of the Chilisai phosphate fertilizer project. More importantly, the new 2011 and 2012 mining commitments are in line with the existing production capability. It underlines the degree to which this project is gaining very welcome support from the authorities here in Kazakhstan.
In 2010 Sunkar invested in a milling plant to produce Direct Application Rock ("DAR"), which has been included in the Kazakhstan's State Industrial Development Program ("Development Program"), a major Government support initiative. In addition, the DAP/MAP project has also recently been included in the Development Program, clearly demonstrating the Governmental strong support for the Company's plans to produce high value finished fertilizers from the abundant phosphate and sulphur resources in the country.
The Company's Preliminary Information Memorandum (PIM) was issued in February 2011 and the aim is to complete the Final Feasibility Study by the middle of 2011."
For further information please contact:
Sunkar Resources plc
Serikjan Utegen, CEO Tel: +44 20 7930 8678
Donald Sinclair, CFO
Canaccord Genuity Limited
Andrew Chubb Tel: +44 20 7050 6500
Bhavesh Patel
GMP Securities Europe LLP
Andrew Young Tel: +44 20 7647 2800
Bankside Consultants
Simon Rothschild Tel: +44 20 7367 8888
Louise Mason
Editors Notes
Sunkar Resources plc
Sunkar Resources plc, through a wholly owned subsidiary Temir Service LLP, operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan. Temir Service LLP holds a Subsoil Use Contract to part of the Chilisai Phosphate Rock Deposit. The contract area is estimated to contain 800 Mt of phosphate ore.
Sunkar's strategy is to build a world class integrated ammoniated phosphate fertilizer plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit, access to sulphur from the nearby North Caspian oil and gas fields and regional long-term marginal priced gas.
On June 17th 2010 the Company had announced that it had successfully renegotiated its production licence commitments as follows:
|
Ore Extraction ('000 tonnes) |
||
|
|
Old Commitments |
Revised Commitments |
|
2010 |
5,000 |
1,000 |
|
2011 |
5,000 |
1,000 |
|
2012 |
10,000 |
1,000 |
|
2013 |
10,000 |
2,000 |
|
2014 |
10,000 |
5,000 |
|
2015 |
10,000 |
5,000 |
|
2016-2031 |
10,000 |
10,000 |
This information is provided by RNS
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