Syrah says Mozambique project remains on schedule
Construction activities at Syrah Resources’ Balama graphite project remain on schedule, the company reported on Wednesday 20 July, denying reports of civil unrest in Mozambique.
“I am not aware of any material civil unrest in Mozambique and further have not observed any recent material changes in political and business activities throughout the country”, said Syrah’s Non-Executive Director, Jose Caldeira.
He was responding to a letter from the Australian Securities Exchange questioning Syrah’s recent share price movements.
Syrah’s Managing Director Tolga Komova also stressed that the company had not experienced any impact on its activities at Balama and reported that the first ore and production ramp-up would occur in the second quarter of next year.
“Concrete works are progressing, regular deliveries of long-lead equipment items from South Africa are occurring and the construction contractor is fully engaged”, he said.
Source: Mining Weekly
Xtract Resources drops sale price of Manica gold project
On Wednesday 20 July, the British-based mining company Xtract Resources announced that it has dropped the price for the sale of its Manica gold project by US$2.5-million.
The Manica gold project is situated four-kilometres north of the town of Vila Manica, near the border with Zimbabwe.
In May, Xtract entered into an agreement with Nexus Capital Limited and Mineral Technologies International (MTI) for the sale of the project for US$17.5-million. However, it has now been agreed that the sale will go ahead with a price of just US$15-million.
The price drop was in response to an agreement that the purchasers would make an initial payment of US$2-million by 12 August, which is earlier than agreed in the original deal. This will help with a cash flow problem that was caused by technical problems at Xtract’s Chepica mine in Chile.
Xtract Resources bought the Manica project from the Australian company Auroch Minerals in June 2015 for US$12.5-million. Wednesday’s announcement also revealed that Xtract has struck a deal with Auroch Minerals, under which on 20 July it will pay US$750,000 of the remaining US$2.5-million.
The Manica licence covers both hard rock and alluvial deposits. Xtract plans to begin gold production from the hard rock deposit in the last quarter of 2017. The alluvial mining is expected to commence in August and all the gold produced will be split with 20% going to Xtract and the remainder going to MTI. Both parties will bear the operating costs on a pro rata basis, and these costs will be taken out of gold sales.
Xtract estimates that in the period until 1 March 2017, around 5,000 ounces of gold will be produced at Manica. With gold at approximately US$1,300 an ounce, this equates to approximately US$6.5-million. The company has a target of eventually producing 32,000 ounces of alluvial gold per year at a cash cost of US$120 an ounce.
Most of the gold in the Manica licence is contained in the “Fair Bride” deposit. In May, the company revealed that an independent technical report found that it holds 1.257 million ounces of gold which can be extracted at one gram per ton. The mine is expected to have a lifespan of over 12 years.
The share price of Xtract Resources fell by a third on the London Stock Exchange following the release of the statement.
Source: Agencia de Informacao de Moçambique
Jan Kulczyk in push on Ncondezi power plant
A project for a coal-fired power station at Ncondezi (Tete Province), generating 300MW, is fast gaining momentum.
The British firm Ncondezi Energy, owned by Polish businessman Jan Kulczyk, and the Chinese firm Shanghai Electric Power (SEP) agreed on the terms of their partnership after nearly 18 months of talks.
In recent years Kulczyk has been highly active in Africa’s oil sector with Neconde Energy (Nigeria), Serinus Energy (Tunisia) and San Leon Energy (Nigeria and Morocco). Ncondezi Energy has good connections in Mozambique thanks to one of its directors, Estevão Pale, current boss of Companhia Moçambicana de Hidrocarbonetos (CMH) and former mines director at the Energy Ministry when Joaquim Chissano was president. He is now a partner of Chissano’s children, Martina and N’Naite, in the mining concern Galilei.
Source: Africa Intelligence
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