Zanaga Iron Ore Company Ltd Mining Convention Ratification (5666C)
June 29 2016 - 2:00AM
UK Regulatory
TIDMZIOC
RNS Number : 5666C
Zanaga Iron Ore Company Ltd
29 June 2016
29 June 2016
Mining Convention Ratification for Zanaga Iron Ore Project
Zanaga Iron Ore Company Limited ("ZIOC") (AIM:ZIOC) is pleased
to announce that the Zanaga Iron Ore Project (the "Zanaga
Project"), a joint venture with Glencore plc, has had its Mine
Operating Agreement ("the Mining Convention") adopted as a law of
the Republic of Congo ("RoC").
The Mining Convention covers the proposed staged development of
the Zanaga Project and sets out the fiscal and legal terms with
respect to the construction and operation of the Zanaga Project
pursuant to its Mining Licence.
With effect from 20 May 2016, the Mining Convention has been
promulgated as a law of the RoC (Law No 15-2016 of 29 April 2016),
following ratification by the Parliament of the RoC and publication
in the Official Gazette on 28 June 2016.
The ratification of the Mining Convention and its adoption as
law is a significant milestone for the permitting of the Zanaga
Project; it confirms, as a legal act, the provisions relating to
the development and operation of the Project.
The Zanaga Project team continues to be engaged in advancing
other key permits and agreements which are part of the ongoing
process of establishing the operating framework for the
Project.
Clifford Elphick, Non-Executive Chairman of ZIOC, commented: "I
am delighted that the Zanaga Project has now had its Mining
Convention approved and adopted as law. We believe this further
demonstrates the Government of the Republic of Congo's support for
the development of the country's mining sector and is testament to
the Project's strong stakeholder relations.
This world class iron ore project has the potential to have a
significant beneficial impact on the RoC, both at the grassroots
level around the Project site, as well as more broadly on the
country's infrastructure and economy.
The Mining Convention, which establishes the Project's fiscal
and operating regime, is now confirmed as an act of law. Such
confirmation is expected to be well received by potential financial
investors and lenders as the Project navigates the current
challenges of the iron ore market."
Key terms of the Mining Convention
Duration of Mining Licence
-- 25-year operating licence effective from the issue of the
Mining Licence (August 2014) and renewable for successive terms of
15 years and in accordance with the Mining Code.
Royalties and Tax
-- A mining royalty of 3%
-- Identification of the specific taxes which will apply to the Project
-- A 5 year tax holiday following the construction phase and a corporate tax rate of 15%
Customs
-- Agreement of the customs regime which will apply to the
Project, including exemptions from import duties and taxes on plant
and equipment imported temporarily for project construction
Permitting
-- Agreement of the permitting regime which will apply to the Project
Land
-- Agreement of the process by which land will be made available for development of the project
State participation
-- The RoC will receive a non-dilutory 10% stake in the Mining Company
For further information please contact:
Zanaga Iron Ore
Corporate Development and Andrew Trahar
Investor Relations Manager +44 20 7399 1105
Liberum Capital Limited
Nominated Adviser, Financial Richard Crawley
Adviser and Corporate Broker Neil Elliot
+44 20 3100 2000
Bell Pottinger
Financial PR Marianne Bowes
and Daniel Thöle
+44 20 3772 2500
About us:
Zanaga Iron Ore Company Limited (AIM ticker: ZIOC) is the owner
of 50% less one share in the Zanaga Iron Ore Project based in the
Republic of Congo (Congo Brazzaville) through its joint venture
partnership with Glencore. The Zanaga Iron Ore Project is one of
the largest iron ore deposits in Africa and has the potential to
become a world-class iron ore producer.
This information is provided by RNS
The company news service from the London Stock Exchange
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June 29, 2016 02:00 ET (06:00 GMT)