AsiaPhos seeking amicable settlement with Sichuan province on mining ops
Singapore
PHOSPHATE mining company AsiaPhos has met officials from the Sichuan Provincial People's Government and officials from various Deyang and Mianzhu departments in its search for an amiable settlement regarding its mining operations, the Catalist-listed company said in an update on its ongoing talks with the Chinese authorities.
The issue concerns the request for undertaking and the "potential non-renewal" of Mine 1, located outside
Jiudingshan Nature Reserve in Sichuan province, China.
Mine 1 is not located within Jiu-dingshan Nature Reserve but, according to the Mianzhu Forestry Bureau, falls within the area earmarked for a proposed panda reserve.
AsiaPhos said that it intended to negotiate terms with the Sichuan provincial government that would provide the company with continued access to sufficient phosphate rocks, as well as possible compensation options or compensation amounts or terms resulting from the company vacating three mines - Mine 1, Mine 2 and the Feng Tai mine - in Sichuan province.
AsiaPhos said any agreement would require formal approval by the Sichuan provincial government, and that no definitive terms have yet been agreed upon.
AsiaPhos also said that it has been advised that ongoing negotiations would not prevent the company from starting international arbitration proceedings - and it will be doing so in the event that no agreement is reached.
The company earlier said that it had sought legal advice on available recourse and was currently in talks with companies that help fund international arbitrations.
The developments in AsiaPhos's mining operations stem from a Nov 24 announcement, in which the company said that it had received a request for undertaking around Nov 21 to vacate and rehabilitate two of its mining sites within the Jiudingshan Nature Reserve.
At the time, AsiaPhos said it did not intend to sign the request for undertaking.
