17th Dec 2008 16:30
17 December 2008
POLO RESOURCES LIMITED
("Polo Resources" or "the Company")
Ereen Mine Update
Polo Resources (AIM:PRL), the mining company focused on developing coal assets in Mongolia, announces that it is scaling back the ramp up of production at its Ereen coal mine in Mongolia as a result of the deteriorating coal market in Asia. The Company planned to reach coal production of 90,000 tonnes per month in 2009 but will postpone full production until such time that new marketing arrangements have been put into place to ensure the sales of Ereen coal. The Company's ongoing exploration programme in the South Gobi Coal Basin is unaffected and remains on schedule.
Neil Herbert, deputy Chairman, said:
"The timing of the ramp up of production at our Ereen coal mine has unfortunately coincided with a significant and un-anticipated deterioration in the Asian coal market, which has affected our ability to achieve coal sales from Ereen.
"We have significantly slowed the pace of the planned ramp up in mine production and will consider slowing it further in 2009, while alternative coal marketing opportunities and potential strategic partnerships are evaluated. Ereen is a low-cost producer of high quality thermal coal and we are confident that short term factors affecting the sale of Ereen coal in the Asian market will only be temporary and will not affect the longer term viability of the mine."
Contacts:
|
Polo Resources Limited Neil Herbert, Deputy Chairman |
Tel: +27 11 269 4906 |
|
Canaccord Adams Ryan Gaffney |
Tel: +44 (0) 20 7050 6500 |
|
Financial Dynamics Ben Brewerton Edward Westropp |
Tel: +44 (0) 20 7831 3113 |
About the Company
Polo is an emerging energy company focused on acquiring and developing advanced stage coal and uranium properties in Asia, Australia and Africa. For complete details on Polo Resources Limited, management encourages investors and interested parties to view its public documents at www.poloresources.com.
CAUTIONARY STATEMENT
The AIM Market of the London Stock Exchange plc does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Polo Resources Limited. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Polo Resources Limited assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
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