Cuba and Australia sign contract for mining project feasibility study

HAVANA, Cuba, Dec 24 (ACN) The Cuban company Commercial Caribbean Nickel S.A. and the Australian Caribe Metals Corporation Pty Limited (CMC) signed an International Economic Association contract to study the feasibility of the Cajálbana mining project, located in the municipality of La Palma, in Pinar del Río province.

In that area there are deposits of 51 million tons of lateritic nickel and cobalt ore, which due to their characteristics and available information obtained in their research, can be processed to obtain marketable nickel and cobalt products, in addition to other metals to be studied.

The object of the agreement in question is to carry out pre-investment studies on the economic exploitation of nickel, cobalt, iron, chrome and other commercially valuable metals in the Cajalbana Geological Research Concession, specialists from the Ministry of Energy and Mines informed exclusively to the Cuban News Agency

They added that the Cuban entity has such deposits and it is a matter of determining the convenience or not of their exploitation and industrial processing, by means of this agreement with a validity of three years, a term that can be extended, with the authorization of the competent authority.

If the Technical-Economic Feasibility Study is positive, the constitution of a joint venture would be negotiated, which will be in charge of the execution of the prroject, including the preparation of the detailed engineering, the procurement, the construction, the starting and operation of the factory.

One of the purposes of the studies will be to determine the mining and extractive technology of the resources and in the case of the ore processing, it will be determined which will be the most efficient to be applied in order to produce nickel and cobalt, as well as other metals found in the deposit.

In any of the cases, the Cuban norms related to the environment will be fulfilled, for which it is conceived the recovery of the mined areas and a satisfactory treatment to the residuals generated by the future industry, according to the specifications of the nation and the international practice in the matter.

Caribe Metals Corporation Pty Ltd. (CMC) is a private company, whose main shareholder is Africa Pacific Capital Pty Ltd., which has built and operated several mines owned by it in other countries, including Australia, in Africa and South America.

Its directors, Alan Doyle and Stephen Turner, have over 60 years of combined experience in the mineral resources industry and both have held numerous senior positions in public and private companies on the major stock exchanges in Australia, Britain and Canada.

The CMC Board has a number of highly experienced directors, including Cuba specialist Kim Prior, who has worked for over 25 years in joint ventures, and as President of the Australia-Cuba Business Council she is a strong advocate for the development of bilateral relations and the strengthening of economic ties between the two countries.

CMC's experience in operations in various regions of the world has focused on the importance of fostering good working relationships with local governments and their communities. In previous projects, local workers have represented more than 95 percent of the employed workforce.

CMC intends to continue this policy and its team hopes to work together with qualified Cuban professionals to carry out a standard JORC (International System of Classification of Mineral Resources and Reserves) geological survey and drilling program at Cajálbana.

Over three years, CMC will contribute over $3.8 million for a two-stage program consisting of a Pre-Feasibility Study and a Technical Economic Feasibility Study (EFTE).

Upon successful completion, and subject to an agreement between both parties, CMC will begin negotiations with the Cuban commercial society to create and finance a joint venture.

This foreign partner has full confidence in the seriousness and responsibility of the country and of its Cuban investors, to whom it is linked by ties of collaboration and mutual aspirations.