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ARM to divest from Namibian gold project

ARM “’ out of Namibia
and into Zambia
Johannesburg, South Africa — MININGREVIEW.COM — 05 May 2010 – Diversified South African miner African Rainbow Minerals (ARM) has revealed that it plans to divest from a gold project in Namibia by June and to finalise development of a copper project in Zambia this year.

In a statement issued here, ARM also said it was in talks with Zimbabwe authorities on possible investments in that country, and that it could pursue joint venture projects in Africa, buoyed by the global economic recovery which was improving the investment climate.

The company added that the Ojikoto project in Namibia, which had a gold resource of about 1.93 million ounces, no longer fell under its investment portfolio.

“ARM is in the process of disposing of the Ojikoto project. The disposal process is still under way and is expected to be completed in June 2010,” the company said in an email to Reuters, but gave no further details.

The company’s Konkola North copper project in Zambia “’ a joint venture with Vale of Brazil which is expected to produce up to 45 000 tonnes of copper per year “’ is currently the group’s main project outside South Africa.

ARM said the exact size of its investment at Konkola North “’ where the company’s previous estimate for development had been $250 million (R1.875 billion) “’ would be determined after completion of a bankable feasibility study in the second quarter of 2010.

“The construction period from go-ahead decision is expected to be two and a half years,” it added.

The company said planned investments in Zimbabwe’s mining sector were still in early stages with no specific projects, but it added that it was in talks with authorities to identify opportunities that would make sense for the company. It added that planned indigenisation of mining firms by the Zimbabwean government would not deter its plans.