Kingsgate Consolidated Limited (ASX:KCN) Board Of Investment Approved Plant Expansion In Central Thailand
Sydney, June 10, 2010 AEST (ABN Newswire) - The Thai Board of Investment ("BOI") has announced that Kingsgate's (
ASX:KCN) Thai subsidiary, Akara Mining Limited, has been approved for a Zone 3 investment promotion package for the new Chatree North Processing Plant in central Thailand. A Zone 3 (rural) fiscal incentive includes an eight year tax free period from first production, followed by a further five years at half the 30% corporate tax rate.
Tax will continue to be paid on production from the existing plant at half the 30% corporate tax rate until November 2014.
The Company has invested in central Thailand for nearly 20 years and we look forward to continuing our collaboration and contribution to the region.
Based on the investment approval provided, the Board has approved the plant expansion, which will commence immediately by finalising the engineering and construction contracts.
The new Chatree North Processing Plant will be a separate 2.7 million tonne per annum ore processing plant, to be built alongside the current 2.3 million tones per annum Chatree processing plant. This will lift combined total ore processing capacity to in excess of 5 million tonnes per year. When fully operational gold production levels has the potential to increase to a rate of 200,000 to 250,000 ounces per year.
The Company and Akara will initiate funding arrangements which are envisaged to be predominantly debt facilities for the approximately US$100 million necessary to complete the Chatree North Plant Expansion. Already US$25 million has been spent on long lead capital items and engineering design. Currently the Company has approximately US$36 million in cash and an undrawn US$30 million working capital facility with Investec.
About Kingsgate Consolidated Limited
Kingsgate Consolidated Limited (ASX:KCN) (OTCMKTS:KSKGF) is an experienced pacific rim gold producer and highly successful ASX listed gold company with significant expertise in gold exploration, development and mining.
Kingsgate owns and operates the Chatree Gold Mine in central Thailand and the Nueva Esperanza Development Project, located in the highly endowed Maricunga gold and silver belt of the Atacama Region of northern Chile.
The Chatree Gold Mine is a world class gold producing asset, with a proven operating history, with 1.8 million ounces of gold and 10 million ounces of silver produced between 2001-2016.
Chatree is a large scale, low-cost, open pit operation with a combined +5 Mtpa processing capacity across two plants, with existing Life of Mine supporting a ~9 year mine life based on 1.3m oz gold reserve.
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