30th Jul 2015 15:18
LONDON (Alliance News) - Ambrian PLC on Thursday said the mechanical completion of its Beira cement plant in Mozambique occurred this week, but said delays and cost overruns mean the plant will cost an extra USD3 million.
Ambrian said that testing of the electricity substation will now start at the site, and a timetable will be agreed to connect the substation to the main grid, which is expected to happen in early August.
But delays to the completion of the plant, due to issues with contractors, the availability of qualified staff and regulatory response times, means the cost of the plant will increase to USD45.5 million from USD42.5 million previously.
Separately, the commodity trading and investment company said Chief Executive Jean-Pierre Conrad made an advance to the company of EUR300,000 in June to CGM (UAE) FZE, an Ambrian subsidiary, to expedite payments of certain invoices related to the plant construction. In addition, he advanced a further CHF200,000 to Ambrian Resources AG.
Ambrian shares were down 3.3% to 7.25 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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