JOHANNESBURG (miningweekly.com) – Dual-listed Jubilee Metals Group remains supportive of its joint venture (JV) partner BMR Group after a surprise mining right termination notice was issued for the Kabwe lead/zinc/vanadium project, in Zambia, from the Mining Cadastre Department of Zambia.
BMR Group plans to appeal the notice, which is dated December 19, but which was only received this week.
This follows a default notice dated August 24, received on September 26, to which BMR had officially responded.
"We had understood that all mining companies in Zambia had received the default notice and we had responded accordingly. We will now pursue all avenues to rectify this situation as soon as possible and will issue a further announcement when we have further news,” BMR chairperson Alex Borrelli said.
The company has 30 days from February 6 to exercise its right to appeal.
Jubilee has invested in a JV with BMR for the development of the Kabwe project and has a 29.01% interest in the issued share capital of BMR.
“This announcement was totally unexpected and Jubilee was not made aware of any potential challenge to the mining right,” Jubilee CEO Leon Coetzer said in a statement on Thursday.
“We are doing all things necessary to assist BMR to resolve this matter timeously and favourably. In this regard, we have made contact with the Mining Ministry of Zambia to arrange an urgent discussion to clarify the reasons for such a notification and its impact on the Kabwe project,” he said.
The company also plans to take the opportunity to reassure the Zambian government of its commitment to BMR and the development of the Kabwe project.
Jubilee will provide further clarity on the Kabwe project and the expected execution programme following the urgent discussion with the Ministry.
Trading in BMR's shares has been suspended at BMR’s request.