UPDATE 1-MagIndustries says gets nod for Mengo potash projectThu...

UPDATE 1-MagIndustries says gets nod for Mengo potash project

Thu Sep 2, 2010 6:27pm EDT

* Says gets verbal communication from Congo govt officials

* Project agreement passed by Congo Assembly, Senate

* Says gets approval on project benefits, features

Sept 2 (Reuters) - MagIndustries Corp (MAA.TO) said it has received confirmation from the Republic of Congo that the country's National Assembly and the Senate have ratified the Canadian company's proposed Mengo potash project.

The company said it has received verbal communication from Congo government officials that the potash investment agreement (PIA) -- the agreement between the two sides -- was passed into law on Monday.

With the PIA ratified, the company gets an assurance that the benefits and features conferred by the agreement will be maintained through the life of the project, MagIndustries said in a statement.

Toronto, Ontario-based MagIndustries is developing a 1.2 million tonne per year Mengo potash project in Congo.

The company has signed a deal with China National Complete Plant Import and Export Corp Ltd (Complant) (000151.SZ) for the construction of the project.

However, on Monday, MagIndustries said it was re-assessing other options for the potash project as Complant was yet to receive approval from Chinese authorities for the deal.

MagIndustries' shares, which have fallen over 10 percent this week, closed at 35.5 Canadian cents Thursday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Roshni Menon)

http://www.reuters.com/article/idUSSGE6811C320100902