31st Jan 2005 09:47
Centamin Egypt Limited31 January 2005 CENTAMIN EGYPT LIMITED ("Centamin" or the "Company") ACN 007 700 352 QUARTERLY REPORT FOR THE PERIOD ENDING 31 DECEMBER 2004 CORPORATE ACTIVITES During the quarter, significant structural and operational changes continued tooccur within the Egyptian bureaucracy which should have a positive impact on themineral sector. His Excellency, Sameh Fahmy, the Minister for Petroleum in Egypt has nowformally assumed responsibility for the management and development of themineral resource sector. During the quarter a new division was created withinthe Ministry, dedicated to the advancement of the mineral resource sector.Numerous working meetings have been held with representatives of this group andalso with the Minister himself and, as a consequence, we believe that theoperational environment has significantly improved. The Petroleum Ministry presently manages in excess of thirty commercialrelationships with international companies such as Shell, Amoco, British Gas andPennzoil and is actively involved in large project financing transactionsrelating to oil and gas infrastructure whereas the previous Ministry had no suchcommercial experience. With the transfer of responsibility for the development of the mineralexploration and mining sector to the Petroleum Ministry, the Egyptian GeologicalSurvey and Mining Authority (EGSMA) has been renamed the Egyptian MineralResource Authority (EMRA). Further commercial change occurred in December withthe appointment of Dr Sherif Sousa as Chairman of EMRA. Dr Sousa was formerlythe Chairman of Rasheed Gas, a large Egyptian public company. Companyrepresentatives have subsequently met several times with Dr. Sousa and canreport that the relationship with EMRA is now one of co-operation and commercialunderstanding. The Company believes that negotiations to permit a resumption of exploration anddevelopment activities at the Sukari Gold Project are in their final stages. • Eastern Desert Concession (the "Concession") - Legal Actions As a consequence of the major political and economic changes being implementedby the Egyptian Government, the Company has, as a matter of policy, requestedthat the decision on the action currently before the Centre for Arbitration, betemporarily deferred to allow for amicable negotiations with EMRA to take placeto resolve the dispute commercially between the parties. • EGSMA/EMRA - Status Report Following the publication of comments made by Mr Abdul El Hassan Abd El RaoufSoliman, the previous Chairman of EGSMA on the EGSMA website relating to thematters before the Court and the Centre, the Company wrote to Mr Solimanrequesting him to formally withdraw or correct his comments on the basis thatthey were false and misleading. As no withdrawal or correction was forthcomingat the time, a penal action for false accusations was filed by the Company'ssubsidiary Pharaoh Gold Mines NL against Mr Soliman under Article 305 of theEgyptian Penal Code. We are pleased to report that during the quarter thecomments were removed from the EMRA website and as such the company is nowreviewing its position with respect to the action. • Sukari Project - Status Report The Sukari project is the most advanced gold project in Egypt and will be thecountry's first gold producer in the modern era. As such, the Companyunderstands that it is important to seek resolution to all matters in anon-confrontational and co-operative manner wherever possible. The Companyremains fully committed to helping develop a significant gold mining industry inthe country. Although this approach has taken significantly more time than anticipated, webelieve it has and will provide for an even more supportive framework in whichto contract with the Government during the lead up to and through projectconstruction. The Company is resolved to continue to abide by both the spiritand intent of the Concession Agreement. Seven drill rigs remain on site at Sukari ready to resume the task of completinginfill and extension drilling. Tenders have been received for contract drillingon the resumption of activities at site and the Company is presently finalisingcontract details. Metallurgical samples have been assembled and are ready for shipment toAustralia as part of the Bankable Feasibility Study into the development of a 4to 5 million tonne per annum processing facility. For Centamin Egypt Limited Josef El-RaghyManaging Director31 January 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Centamin PLC