EMED Mining (LON:EMED, TSE:EMD) this afternoon confirmed that it has submitted a number of documents to Andalucía’s regional government (Junta de Andalucía) as the permitting process for the Rio Tinto copper mine nears completion.
The company explained that this latest submission comprises the documents required to create an environmental restoration plan, which covers an enlarged land footprint. These documents were requested by the Junta back in July.
EMED confirms that following the submission it now expects that the ‘next steps’ will be the conditional approval of the enlarged restoration plan and the approval of ‘Administrative Standing’ – which essentially confirms that EMED can legally restart the mine - during the fourth quarter of this year.
“The current regulatory process is consistent with the company completing the critical permitting stages in 2011, obtaining formal access to all project lands in mid-2012 and to start commissioning in late 2012,” said managing director Harry Anagnostaras Adams.
"As demonstrated by our prompt completion and submission of responses to all outstanding requests and conditions, we continue to work closely and positively with the local authorities."
The Rio Tinto mine is expected to allow EMED to quickly achieve profitability and in turn make further investments in both Rio Tinto and in other projects in the region. Once operational the mine is expected to produce around 37,000 tonnes of copper concentrate from 9 million tonnes of ore each year.
In May EMED received formal approval from Andalucía’s department of Culture and Heritage. Later, in July, the company revealed that the two remaining government departments had requested that EMED expand its formal documentation to include its responses to a number of additional regulatory requests.
EMED is also preparing tender documentation and finalising its plans for debt financing.
Meanwhile on the ground it has identified the second potential development project on the Rio Tinto site, the San Dionisio underground mine.
It is important to stress that the Rio Tinto site has huge potential beyond the primary mine restart. In fact Adams and his team actually have a catalogue of potentially significant mine development projects. But for the time being the group’s immediate future hinges on the Rio Tinto restart.
In today’s statement Harry Adams highlighted the progress EMED is making on several fronts, saying:“We have triggered the detailed documentation for plant-repair contracts, most of which are intended to be let to local suppliers.
“The number of people of people working at the site will now temporarily increase by about 50 and upon formalization of all permits, including formal occupation of the enlarged land footprint, there would be over 1,000 people working on the site.
"We have also received indicative term sheets from alternative project financiers, including the company's bankers and the intended product customers.
"We continue as well to explore the larger potential at Rio Tinto.
“We have identified significant expansion possibilities in the Cerro Colorado open pit and in the adjacent San Dionisio underground mine. These possibilities will require separate permitting in due course, after completing the required drilling and planning which can proceed when Administrative Standing is granted."