Dar es Salaam, Tanzania (PRWEB) October 24, 2009
Kastan Mining announced today that the Company has filed a Special Mining License Application with the Ministry of Energy and Minerals. The application represents the final regulatory approval required before Kastan begins commercialization of its copper concessions in the Kilosa District. Based on the results of its exploration efforts, the recommendations included in an independent feasibility study, and follow up geological and metallurgical work, Kastan estimates the copper resources in Kilosa will support a mining program for at least 30 years.
The Company commissioned MTL Consulting Ltd., a Dar es Salaam based mineral industry consulting company, to conduct a feasibility study and an Environmental Impact Assessment ("EIA") for the concession area which covers almost 170 sq. km. Dr. Mutagwaba and his team at MTL have worked with Kastan to create an environmentally and socially responsible mining program to achieve commercial success benefiting all stakeholders. The Company's EIA for the area was approved in May 2009 by the National Environmental Management Council. When granted, the license will be the first copper mining license in Tanzania.
Over the next ten years mining activities are expected to generate government royalties of approximately US$46 million, income taxes of US$345 million and US$76 million in other taxes and fees. Kastan plans to hire almost 300 employees within three years after the license is granted (98% Tanzanians) and to stimulate the creation up to 2000 additional jobs from other employers. The Company has also made a commitment to construct two secondary schools and a dispensary for the villages in the area. Construction is expected to begin within six months after the mining license is granted.
Kastan is the first company in Tanzania that has taken a step recommended by the Bomani Commission in reserving a shareholder interest in the project for local Tanzanian's. The Company is also in reserving 1.5% of the net profits from the venture for a village social development fund which will be administered for the villages by the Kilosa District Council.
Yun Ho Cho, Kastan's Chairman commented: "Since we began work in Kilosa, we have been impressed with the proactive and positive attitude we have seen from Village, District and Regional officials and from the many villagers in the mining area. All have help guide our efforts to ensure their communities share in the benefits of the mining activities. We have also received a high level of support from the Honorable Clement Lyamba and staff and officials in the Ministry of Energy and Minerals. Without this assistance and support this project would not have been possible. Kastan wishes to thank all stakeholders for the vote of confidence they have expressed in Kastan and the support they have shown us since we began work on the project."
Kastan Director Salim Zagar continued: "The widespread mineralization in the area including high grade copper and other metals makes for a compelling commercialization opportunity. We intend to continue exploration in the surrounding area, as the Company controls over 1,000 sq km of contiguous mineral rights and we have seen evidence of other mineral deposits which may support additional commercialization. We are excited about the long-term potential in Kilosa and are committed to developing mining and processing activities in Kilosa with the objective of keeping as much of the value chain in Tanzania as possible."
Kastan Vice Chairman, John Tate, commented: "Filing the Special Mining License Application is a major milestone for Kastan. It represents the culmination of over two years of intensive effort. It is gratifying to take this step, and we look forward to working with the Ministry of Energy and Minerals to ensure our mining efforts are productive and comply in all respects with sound commercial, social and environmental standards. We are convinced the value proposition in Kilosa is one that will bring substantial benefits to all stakeholders."
About Kastan Mining
Headquartered in Dar es Salaam, Tanzania, Kastan Mining is a mining and exploration company focused on mining opportunities in Tanzania. Kastan has several initiatives underway at various stages of development ranging from initial production to early exploration.
This press release contains statements which constitute forward-looking statements within the meaning of the US securities laws. Such statements include, but are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as "will", "expect", "anticipate", "believe" and "envisage". By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Kastan's control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and other factors over which Kastan has limited control.