Qtr report end 31.12.04 Pt 1
Centamin Egypt Limited
31 January 2005
CENTAMIN EGYPT LIMITED
('Centamin' or the 'Company')
ACN 007 700 352
QUARTERLY REPORT FOR THE PERIOD ENDING 31 DECEMBER 2004
CORPORATE ACTIVITES
During the quarter, significant structural and operational changes continued to
occur within the Egyptian bureaucracy which should have a positive impact on the
mineral sector.
His Excellency, Sameh Fahmy, the Minister for Petroleum in Egypt has now
formally assumed responsibility for the management and development of the
mineral resource sector. During the quarter a new division was created within
the Ministry, dedicated to the advancement of the mineral resource sector.
Numerous working meetings have been held with representatives of this group and
also with the Minister himself and, as a consequence, we believe that the
operational environment has significantly improved.
The Petroleum Ministry presently manages in excess of thirty commercial
relationships with international companies such as Shell, Amoco, British Gas and
Pennzoil and is actively involved in large project financing transactions
relating to oil and gas infrastructure whereas the previous Ministry had no such
commercial experience.
With the transfer of responsibility for the development of the mineral
exploration and mining sector to the Petroleum Ministry, the Egyptian Geological
Survey and Mining Authority (EGSMA) has been renamed the Egyptian Mineral
Resource Authority (EMRA). Further commercial change occurred in December with
the appointment of Dr Sherif Sousa as Chairman of EMRA. Dr Sousa was formerly
the Chairman of Rasheed Gas, a large Egyptian public company. Company
representatives have subsequently met several times with Dr. Sousa and can
report that the relationship with EMRA is now one of co-operation and commercial
understanding.
The Company believes that negotiations to permit a resumption of exploration and
development activities at the Sukari Gold Project are in their final stages.
• Eastern Desert Concession (the 'Concession') - Legal Actions
As a consequence of the major political and economic changes being implemented
by the Egyptian Government, the Company has, as a matter of policy, requested
that the decision on the action currently before the Centre for Arbitration, be
temporarily deferred to allow for amicable negotiations with EMRA to take place
to resolve the dispute commercially between the parties.
• EGSMA/EMRA - Status Report
Following the publication of comments made by Mr Abdul El Hassan Abd El Raouf
Soliman, the previous Chairman of EGSMA on the EGSMA website relating to the
matters before the Court and the Centre, the Company wrote to Mr Soliman
requesting him to formally withdraw or correct his comments on the basis that
they were false and misleading. As no withdrawal or correction was forthcoming
at the time, a penal action for false accusations was filed by the Company's
subsidiary Pharaoh Gold Mines NL against Mr Soliman under Article 305 of the
Egyptian Penal Code. We are pleased to report that during the quarter the
comments were removed from the EMRA website and as such the company is now
reviewing its position with respect to the action.
• Sukari Project - Status Report
The Sukari project is the most advanced gold project in Egypt and will be the
country's first gold producer in the modern era. As such, the Company
understands that it is important to seek resolution to all matters in a
non-confrontational and co-operative manner wherever possible. The Company
remains fully committed to helping develop a significant gold mining industry in
the country.
Although this approach has taken significantly more time than anticipated, we
believe it has and will provide for an even more supportive framework in which
to contract with the Government during the lead up to and through project
construction. The Company is resolved to continue to abide by both the spirit
and intent of the Concession Agreement.
Seven drill rigs remain on site at Sukari ready to resume the task of completing
infill and extension drilling. Tenders have been received for contract drilling
on the resumption of activities at site and the Company is presently finalising
contract details.
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.
For Centamin Egypt Limited
Josef El-Raghy
Managing Director
31 January 2005
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 2 hours ago Savannah Energy
- 3 hours ago Buccaneer Energy PLC
- 3 hours ago Savannah Energy
- 3 hours ago Carclo
- 4 hours ago Schroder Japan Growth Fund