22nd Oct 2014 08:00
LONDON (Alliance News) - Ironveld PLC Wednesday said it has 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 SAR15 million, or GBP0.85 million, towards the cost of the smelter.
The owner of an iron, vanadium and titanium project located on the northern limb of the Bushveld Complex in Limpopo Province, South Africa, said getting the grant would also enhance the project's cashflows.
South Africa's critical infrastructure programme in an investment incentive that aims to support critical infrastructure by lowering the business costs of the investment. It is a cost-sharing grant of a maximum of 30% of the total infrastructure development costs, capped at SAR30 million per project. Success is based in a score of the economic benefit criteria.
"Ironveld continues to make good progress towards delivering the 15MW project. If successful, the CIP grant application would further enhance project cashflows following the approval of the 12I Tax Incentive, which affirmed the State's commitment to our project," Ironveld Chief Executive Peter Cox said in a statement.
The company said its environmental consultant Prescali has also submitted its application for a licence relating to air quality and emissions for the smelter as part of the Integrated Environmental Management application process.
Ironveld shares were up 1.3% at 5.95 pence early Wednesday.
By Steve McGrath; [email protected]; @stevemcgrath1
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