EMED sees strong political support for its Rio Tinto mine

EMED Mining, the Europe-based minerals development and exploration company, says the local government in Andalucia is now strongly behind its Rio Tinto mine project.

The Rio Tinto mine, which has no connection with the mining company of the same name, has been on "care and maintenance" since 2001. EMED bought it in 2008 and believes it contains 2.1bn pounds of copper.

It also believes there may be further resources spread around the concession area that it now owns.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The problem for EMED is getting all the regulatory approvals necessary to start production and exploration activity.

It says it is aiming at re-starting the mine in the third quarter of 2012 and says it has been heartened by "clear public policy statements committing support for the company's plans" by the Andalucian Economy Minister.

EMED also says all legal challenges to the development have been dismissed and that the police are prosecuting third parties who have "disobeyed judicial orders" in respect of residues from previous mining activity.

Harry Anagnostaras Adams, EMED's managing director said of the latest update:

"The company is committed to the timetable to trigger the restart of this major copper mine during third quarter 2012, followed by a ramp-up to target steady-state ore production of 9 million tonnes per annum in 2014."

He added: "We are laying the foundations for commencement of brown-field exploration programmes which have the potential to expand mineral resources and project life which is of paramount importance to all stakeholders."

Shares in EMED were up 5% by 11.50am on today's update. Since the beginning of the year the stock has lost 38% of its value.

BS