Moma Development Contract
March 18 2004 - 10:08AM
UK Regulatory
RNS Number:7005W
Kenmare Resources PLC
18 March 2004
Kenmare Resources plc ("Kenmare" or "the Company") Announcement
Kenmare Agrees Development Contract
for Moma Titanium Minerals Project
Kenmare Resources plc is pleased to announce today that it has reached agreement
on a Fixed Price Development Contract to build the Moma Titanium Minerals Mine
in Mozambique. The contract is with a Joint Venture (JV) formed by two companies
for the purposes of the project. One is a large contracting group with
operations stretching around the globe which specialises in large complex
construction projects. The other is an international engineering group with
specific mineral sands expertise and experience of working in Mozambique. These
best in class companies are bringing their expertise together to deliver the
project for Kenmare under the agreed terms.
The contract in its agreed form has been sent to the Moma Lender Group of
development finance institutions and banks for their approval. The Lender Group
has already approved a summary of the contract. On gaining Lender Group approval
of the full contract, it will be presented to the boards of Kenmare and the JV's
parent companies for final approval and signature.
The contract is established on a base price of US$220 million with provisions
for cost overruns up to US$240 million, at which point it becomes totally fixed.
Between US$220 and US$240 million the JV shoulders a progressively greater
proportion of the costs. Hence, there is a great incentive for it to ensure
overruns above US$220 million are minimal.
Kenmare's Chairman, Charles Carvill, said, "This contract has been very
carefully negotiated by ourselves and the Joint Venture, and is backed up
jointly and severally by its respective parent companies. We believe that it
will deliver us an excellent project on terms that are attractive to Kenmare,
which will allow us deliver returns to our shareholders."
Ends.
Kenmare Resources plc
Michael Carvill, Managing Director
Tel: + 353 1 671 0411
Mob: + 353 87 674 0110
Conduit PR Ltd
Leesa Peters
Tel: +44 207 936 9095
Murray Consultants
Tom Byrne
Tel: + 353 1 498 0339
www.kenmareresources.com
Thursday 18th March, 2004
This information is provided by RNS
The company news service from the London Stock Exchange
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