AIM to Start Zinc Shipments From African Mine in 2009 (Update1)
By Angela Macdonald-Smith
Nov. 28 (Bloomberg) -- AIM Resources Ltd., an Australian mining company with a zinc project in Burkina Faso, expects first ore production from the mine in mid-2008 in advance of the initial shipment of zinc concentrates scheduled in 2009.
Agreements on zinc sales contracts with Xstrata Plc and Boliden AB are expected in the year ending June 30, 2009, Sydney-based AIM said today in a presentation given to the Australian Stock Exchange.
The schedule for the Perkoa mine, while matching a forecast earlier this month, is more than a year behind that given by the Sydney-based company two years ago. Delays at the project and concerns over corporate governance prompted AIM's largest shareholder, North Sound Capital LLC, to question Chairman Victor Bradley at a shareholders meeting today in Sydney.
``We are disappointed in the responses of the company to the questions we raised at the AGM, and intend to use all resources at our disposal to gain further insight into these and other issues which we believe are fundamental to the governance of AIM Resources,'' North South Chief Investment Officer Thomas McAuley said in an e-mail.
AIM rose 1 Australian cent, or 5.3 percent, to 20 cents in Sydney trading on the exchange.
Mining companies are targeting Africa to locate fresh supplies of metals as global demand for zinc, copper and nickel climbs. The Perkoa project is due to produce 132,000 metric tons a year of zinc concentrate at 53 percent zinc over 12 years.
Shareholders today rejected the company's remuneration report, while about 47 percent of shares voted were cast against the re-election of Bradley and William Cash as directors, according to figures lodged by the company with the exchange.
To contact the reporter on this story: Angela Macdonald-Smith in Sydney at [email protected]
Last Updated: November 28, 2007 01:31 EST
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