Centamin PLC Suspension of operations (4387T)
December 13 2012 - 2:02AM
UK Regulatory
TIDMCEY
RNS Number : 4387T
Centamin PLC
13 December 2012
For immediate release 13 December 2012
Centamin plc ("Centamin" or "the Company")
(LSE:CEY, TSX:CEE)
Suspension of operations
Centamin advises that it has received an illegal retrospective
claim from Egyptian General Petroleum Corporation (EGPC) for LE403
million (c. US$65 million) for diesel fuel supplied from December
2009 until January 2012. Furthermore, EGPC has refused to authorise
future supply of diesel to the Sukari Gold Mine until this amount
is paid. The Company, with EMRA's support, has been seeking to have
the fuel supplies re-instated. Discussions are on-going but fuel
supplies have reached critical levels.
In addition, following the Market Update of 26th November,
Centamin wishes to advise that, having obtained all necessary
permissions from the Egyptian Mineral Resources Authority (EMRA) in
line with normal procedures, it commenced the process of gold
exports. However, during this process an unforeseen and arbitrary
request from customs officials for prior approval by the Minister
of Finance halted the shipment. This approval has been urgently
sought but has not yet been forthcoming.
In light of these developments, it is with regret that, due to a
resultant lack of diesel and a short-fall in working capital in
Egypt for the local operations the decision has been taken to
suspend operations at Sukari and to place the mine on care and
maintenance until these issues are satisfactorily resolved.
Centamin will take vigorous action to defend its rights to
continue the extraction and export of gold from the Sukari mine, to
obtain fuel supplies and to challenge the illegal retrospective
claim from EGPC.
For more information please contact:
Centamin plc Buchanan
Josef El-Raghy, Chairman Bobby Morse
Andy Davidson, Head of Business Development Cornelia Browne
and Investor Relations Gabriella Clinkard
(andy.davidson@centamin.co.uk) + 44 20 7466 5000
+44 20 7569 1671
This information is provided by RNS
The company news service from the London Stock Exchange
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