7th Nov 2019 11:54
(Alliance News) - Shares in Base Resources Ltd fell on Thursday as the Madagascan government ordered a halt to work at the Toliara mineral sands project.
Base was trading at 11.00 pence per share in London, down 16%.
The order, Base said, comes as fiscal discussions over the project continue. Further, Base also noted the "illegal actions by a small minority" of local people at the project had been dealt with by the Madagascan legal system.
Perth, Australia-headquartered Base stressed the project enjoys broad support from local communities, as well as governments at a regional and national level.
"It is therefore disappointing the Malagasy government has now stated this as a justification for requiring a suspension," said Base.
"The company will continue to engage in a transparent and respectful dialogue with government to deepen its understanding of the significant benefits of the project to Madagascar and secure agreement on mutually beneficial fiscal terms that represent a sound and sustainable basis on which the Toliara project may proceed to development."
Base stressed the completion of a feasibility study for Toliara, due in December, will not be affecting by the government's decision. Base has over 1 billion tonnes of resource at Toliara, supporting over forty years of mining, similar to its existing Kwale project in Kenya.
By George Collard; [email protected]
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