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AsiaPhos gets rejected for mining rights again, five months later
MINING firm AsiaPhos has received another rejection from the Chinese authorities to renew the exploration right for a mine in Sichuan province, with this notification arriving more than five months after the letter had been signed.
This comes as the Catalist-listed mining firm, which mines for phosphate minerals, remains locked in dispute with the Sichuan provincial government for a settlement over the rejected renewals of mining rights of two mines - Mine 1 and Mine 2. AsiaPhos had earlier said that the rejection by the authorities was an "unlawful expropriation of AsiaPhos' investments", and that it was exploring arbitration.
It said on Thursday that its mining unit, Mianzhu Norwest, had on Wednesday received a notice dated July 4, 2018 from the Department of Natural Resources of Sichuan Province, which said that no exploration licenses may be issued forexploration activity in the Giant Panda National Park.
The company had earlier said that authorities said the mines are located within the boundaries of the JiuDingShan Nature Reserve and the Giant Panda National Park, which are supposedly due for ecological protection.
AsiaPhos continued to hold off from providing an estimate on the potential financial effects of the non-renewal of the exploration right for Mine 1. It said that the compensation amount has not been finalised by the Chinese government.
Shares of AsiaPhos last traded at S$0.011.