Thmson Financial - LONDON (Thomson Financial) - ZincOx Resources PLC said the Yemen parliament has approved the contract for development of Jabali zinc mine located 100 kilometres north east of the capital city, Sana'a.
The zinc oxide mineral exploration company said it expects the capital cost of about 176 mln usd for developing the project.
The company said the deposit is expected to be mined at the rate of 800,000 tonnes per annum of ore for the production of about 70,000 tonnes per annum of high quality zinc oxide. Production is scheduled to begin in the middle of 2009, it added.
ZincOx said it is in advanced stage discussions with London-based investment banking boutique, Exotix Ltd for a financing facility.
The contract is an agreement between the Ministry of Oil and Minerals, representing the Government of Yemen, and Jabal Salab Co (Yemen) Ltd, in which ZincOx holds a 52 pct stake with the remaining 48 pct stake being held by Ansan Wikfs (Yemen) Ltd, the company said.