16th Oct 2015 13:31
LONDON (Alliance News) - BMR Mining PLC Friday said it has decided to construct the processing plant for the Kabwe project in Zambia on its own land after terminating a potential lease deal.
The miner, which is setting up an operation at Kabwe to extract lead and zinc from tailing it acquired from former producing mines in the country, was planning to lease land and some equipment from Sable Zinc Kabwe Ltd, but has now quashed that idea.
Sable Zinc Kabwe is a unit of Glencore PLC, the FTSE 100-listed multi-commodities miner and trading house.
BMR said it decided to use its own land because it believes the plant "should be secured in the medium term" and to ensure it has "direct control" over the plant.
When it signed that deal with Sable Zinc Kabwe at the end of September, it said it would benefit because it would not have to buy the equipment or transport it to the project site.
"Whilst the Board is continuing to finalise the specification and costing of the operational plant, it does not believe that this decision will have a material adverse impact thereon," it said in a statement.
BMR shares were up 1.5% to 6.97 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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