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Monday, 7 July 2014

Burundi state takes stake in mine

Burundi’s government took a 15 percent stake in a project to build a nickel and iron mine led by Burundi Mining Metallurgy (BMM), Danko Konchar, the chief executive of Kermas Group, the majority owner, said last week. 

The state’s stake in Burundi Musongati Mining, of which BMM holds the remaining 85 percent interest, was part of the terms of a mining licence agreement signed this month, Konchar said. 

The project would require investment to construct the mine and a facility to process 1 million tons of ore annually into iron, nickel and cobalt within the next five years, said Konchar. The goal to increase capacity at the plant within a decade will cost about $3 billion (R31.9bn).

Source: Bloomberg