Fourth quarter results Part1
Centamin Egypt Limited
30 July 2004
CENTAMIN EGYPT LIMITED
('Centamin' or the 'Company')
ACN 007 700 352
QUARTERLY REPORT FOR THE PERIOD ENDING 30th JUNE 2004
CORPORATE ACTIVITES
• The Egyptian Government
On 10th July 2004, the Egyptian President, His Excellency Mr Hosni Mubarak
appointed a new Prime Minister, The Honourable Dr Ahmed Nazif. On the 14th July
the Prime Minister announced a thirty five member Cabinet to govern the
republic.
Within the new Cabinet, the Honourable Rasheed Mohamed Rasheed has been
appointed as the Minister for Industry, the minister responsible for the mining
sector. The former Minister for Industry, Dr Saiedi is no longer a minister in
the Cabinet.
The appointment of a new Prime Minister and Cabinet has been largely welcomed by
both domestic and international observers with reform and the encouragement of
foreign investment expected to improve significantly as a result. The Company
supports these views and welcomes the new Minister for Industry's appointment
and will, as soon as is possible, meet with the Minister in a bid to resolve the
current dispute between EGSMA and Pharaoh Gold Mines NL (the company's wholly
owned subsidiary, 'Pharaoh').
• Eastern Desert Concession (the 'Concession') - Legal Actions
Administrative Court
As previously reported, in May 2003 Pharaoh, the holder of the Concession,
initiated an action in the Administrative Court in Cairo, against both the then
Minister for Industry and the Egyptian Geological Survey and Mining Authority
('EGSMA'), requesting that the Court direct both parties to sign all necessary
documentation in order to permit a return to work at Sukari. The court declined
to proceed with Pharaoh's claim against the Minister on the basis that the
action against EGSMA should have been submitted to formal arbitration under the
terms of the Concession Agreement. The Company has been advised that the Court
has not made any other decision or finding with respect to this action.
The Company has appealed the decision on the basis that the court should have
proceeded with the case against the Minister and should have only rejected the
action against EGSMA.
Cairo Regional Centre for Commercial Arbitration (the 'Centre')
Subsequent to the Company and EGSMA having made their submissions to the Centre,
the process of arbitration was held on 27th June 2004.
The first determination sought by Pharaoh was for the immediate enforcement of
Article XXIV (h) of the Concession, which states that pending an arbitration
award, operations and activities on the Concession are to continue. The
Arbitrators advised that they would make their decision in the full context of
the submissions made by the parties. The parties have the right, until 23rd
September 2004, to submit any further information to the Arbitrators after which
a decision is expected.
• EGSMA
Following the publication of comments made by Mr Abdul El Hassan Abd El Raouf
Soliman, the current Chairman of EGSMA on the EGSMA website, relating to the
matters before the Court and the Centre, the Company formally contacted Mr
Soliman requesting a withdrawal or correction to his comments on the basis that
they were false and misleading. As no withdrawal or correction has taken place a
penal action for False Accusations has been filed by Pharaoh against Mr Soliman
under Article 305 of the Egyptian Penal Code.
• Sukari Project
The Sukari project is the most advanced gold project in Egypt and will be the
first gold producer in the modern era and as such the Company understands that
it is important to seek resolution to all matters in a non-confrontational and
co-operative manner if possible. The Company is fully committed to developing a
significant gold mining industry in the country.
The Company remains resolved to continue to abide by both the spirit and intent
of the Concession Agreement.
Seven drill rigs are on site at Sukari ready to resume the task of completing
infill and extension drilling. Metallurgical samples have been assembled and are
ready for shipment to Australia as part of the Bankable Feasibility Study into
the development of a 4 to 5 million tonne per annum processing facility.
During this current quarter, the Company intends to continue its staff training
programme by sending Egyptian employees to visit operating gold mines in both
Ghana and Tanzania to gain valuable experience as the Company pursues its
efforts to establish a modern gold mining industry in Egypt and to resolve the
current dispute with EGSMA.
For Centamin Egypt Limited
Josef El-Raghy
Managing Director
30th July 2004
This information is provided by RNS
The company news service from the London Stock Exchange
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