21 Mar 2011 07:00
CONSOLIDATED GENERAL MINERALS PLC
Planned Construction of a Cement Plant in Mozambique
21 March 2011 - Consolidated General Minerals plc ("CGM" or the "Company") announces that since the appointment of new management it has made rapid progress towards implementing the investment strategy approved by shareholders at the AGM on 16 December 2010.
CGM's first investment is planned to be the construction of a clinker grinding and cement packing plant in the port of Beira, Mozambique. The plant will have a design capacity of 110 tonnes of cement per hour and will be built for an estimated capital cost of US$24 million. It is anticipated that the plant will supply the growing local market and certain export markets in landlocked Zimbabwe, Zambia, Malawi and Katanga Province (DRC).
CGM is in advanced discussions for the formation of a joint-venture with Calme SpA, a private Italian cement producer to build and operate the Beira plant. The joint-venture's intention is to develop and operate a number of similar cement facilities in other countries in sub-Saharan Africa. The Company has also initiated discussions for debt finance to support the project.
CGM has purchased a 10 acre site for the construction of the cement plant in the immediate vicinity of the port of Beira with good access to road and rail infrastructure for a maximum consideration of US$880,000, subject to certain qualifying events . It is anticipated that the land will be owned by the joint-venture company. Engineering design is well advanced and preparatory work on the site, including an environmental impact study will be initiated in the coming weeks.
CGM is confident of obtaining approval to commence construction of the plant from the Council of Ministers in Mozambique in the near future once the simplified environmental report and management plan have been approved. Once the necessary governmental approvals have been received the construction of the plant is expected to take 15 months.
The Company is awaiting guidance from the London Stock Exchange as to whether the suspension in trading of the Company's ordinary shares will be lifted prior to 31 March 2011, failing which trading of CGM's ordinary shares on AIM will be cancelled. The Company believes that its venture in Mozambique represents sufficient progress aligned to its investing policy to create shareholder value by identifying and acquiring holdings in businesses and ventures active in natural resources with a particular focus on the minerals (including industrial minerals) and metals sectors. However if Company's admission to AIM is cancelled, the Company will seek admission of its shares within the next 12 months on a European or North American exchange either by applying for admission or through a corporate transaction.
For further information contact:
Consolidated General Minerals plc
Robert Adair +44(0)7872 930 114
Chairman
Jean-Pierre Conrad +41 (0)79 601 51 59
Chief Executive
Brewin Dolphin (Nomad)
Alex Dewar +44(0) 131 529 0276
Threadneedle Communcications
Laurence Read +44 (0)20 7653 9855
Notes to Editors:
Consolidated General Minerals plc's ("CGM") investment policy is to create shareholder value by identifying and acquiring holdings in businesses and ventures active in natural resources with a particular focus on the minerals (including industrial minerals) and metals sectors. At 31 December 2010 CGM had cash of US$21.1 million, net assets of $20.9 million and no long-term debt or borrowings. As of the date of this announcement, CGM had cash of US$20.5 million.