17th Feb 2015 09:32
LONDON (Alliance News) - Ironveld PLC shares were trading higher Tuesday after the company said its critical infrastructure programme application for its 15 megawatt smelter has been approved by the South African government.
Ironveld is the owner of an iron, vanadium and titanium project located on the northern limb of the Bushveld Complex in Limpopo Province, South Africa.
Back in October, Ironveld said it had submitted a critical infrastructure programme application for its 15 megawatt smelter to the South African government, which could lead to it getting a grant of about ZAR15 million, or GBP0.85 million, towards the cost of the smelter.
In a trading update Tuesday, the company said the application was approved by South Africa's Department of Trade and Industry. The Critical Infrastructure Programme is an investment incentive of the South African government to stimulate investment growth by lowering the business costs of investment. It said that the cost-sharing grant is now for a maximum of ZAR13.3 million, equivalent to around GBP740,000.
The company's shares were trading at 6.40 pence Tuesday morning, up 11.4%. The shares were amongst the best performing stocks on London's AIM.
Ironveld said the project now remains on track, with the Environmental Impact Assessment approval of the 15 megawatt furnace and grant of its first mining licence expected in the first quarter. this year.
"Discussions continue with a number of potential offtake partners and we remain confident that the construction of the 15 megawatt smelter will commence in mid-2015," said Chief Executive Peter Cox in the statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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