Toronto-listed miner Tiomin Resources is evaluating new investment opportunities and hopes to see material progress in 2007 to restore shareholder value.



The company has two pro- jects under way, the Pukaqaqa copper project, in Peru, and the Kwale mineral sands project, in Kenya.



Pukaqaqa was the subject of extensive exploration by Rio Tinto between 1996 and 2000, when 17 590 m of drilling was completed.



The project has good infrastructure and growth potential. Tiomin is optimistic that the Pukaqaqa project will create significant value for its shareholders in view of the strong outlook for commodities such as copper.



Tiomin believes that Kwale remains an interesting project, but the company is waiting for the government of Kenya to complete the tasks required by international lenders so that it can reorganise a new project financing syndicate.



Kwale is expected to produce 330 000 t/y of ilmenite, 75 000 t of rutile and 40 000 t of zircon a year, generating over $40-million in pretax operating cash flow (excluding capitalised financing costs) for the first six years of an expected mine life of about 11 years.



“At this point, we are waiting for the Jinchuan group to make a visit to Kenya and determine how they would like to proceed with the operation of the project,” says Tiomin project coordinator and investor relations officer Joyce Misoi.



Jinchuan is one of the largest producers of nickel, cobalt and platinum-group metals (PGMs) in China, combining mining, milling, smelting and refining, and chemical engineering operations. Its nickel and PGMs are 88% and 90% respectively of total Chinese production.



Tiomin shareholders have approved the Jinchuan group’s offer to acquire 7 212 134 common shares of Tiomin Resources at C$0,15 a share, for a total of C$10,9-mil- lion, increasing Jinchuan’s interest in Tiomin to 20%.



Misoi says that Tiomin will continue to work with the Kenyan government towards the implementation of the Kwale project and it is also looking for sound deals and is committed to expanding its business.



Tiomin has also granted Jinchuan an 18-month option to increase its interest in Tiomin to a total of 30%.

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