Kenmare deal with mine contractor
Wednesday, 23 December 2009 15:55Mining company Kenmare Resources has agreed a settlement with the contractor employed to build its Moma mine in northern Mozambique.
Under the terms of the deal with Multiplex Bateman Joint Venture (MBJV), all outstanding rights, obligations and liabilities of all parties under the Moma contract have been settled.
Kenmare has been paid $10m and, under the agreement, will keep around $12m which is currently held on retention. MBJV also has waived invoice payments totalling $8.5m and other costs due to it under the contract.
Damages of $20m for delays to the mine's construction were also withheld from invoices and certain reimbursable costs submitted by the contractor.
Kenmare chairman Charles Carvill said it was 'very pleased' with the settlement. 'It allows Kenmare to move on with establishing Moma as a robust and well-performing mine,' he said.
