Ecometals Resolves Environmental Liabilities in Brazil 2013-07-31 09:30 AT - News Release
Mr. William Lamarque reports
ECOMETALS LIMITED ANNOUNCES THE RESOLUTION OF ALL ENVIRONMENTAL REGULATORY LIABILITIES AT SERRA DO NAVIO, BRAZIL
Ecometals Ltd. has completed the final resolution of all regulatory liabilities arising from environmental damage allegedly caused during the original mining operations conducted by Icomi at Serra do Navio, Brazil (SdN).
IMAP, the state environmental agency, had refused the renewal of the company's environmental licence pending settlement of the civil action brought by the state environmental prosecutor against the company in 2009 regarding the legacy liabilities. The prosecutor in turn required satisfying that the company's contribution to environmental rehabilitation at SdN was sufficient as well as clarification of the company's intentions to be a responsible corporate citizen.
On June 19, 2013, the company signed an agreement with the Municipality of SdN under which the company's subsidiary Ecometals Manganes do Amapa (EMAL) would pay an amount to the Municipality of SdN equal to 5 per cent of EMAL's audited net income, on an annual basis, as restitution for the damage caused by the original mine owners.
This morning, at a reconciliation hearing in the Amapa State Civil Court before Judge Marcella Peixoto Smith, the prosecutor endorsed the agreement between the company and the Municipality of SdN. He also took note of the company's intentions to support certain community projects in SdN and elsewhere. The company has 120 days to liaise with relevant local government authorities and NGOs to prepare and cost its plans to contribute to a limited number of local causes identified as deserving its support. The company will also work with the Municipality of SdN to find ways to commercialize the acacia plantations which formed part of the original mine rehabilitation plan, to control the spread of the plantations and to replace them with other native species where possible. In the meantime, while setting penalties for the company in the event of non-compliance with the terms agreed at the hearing, the prosecutor will withdraw the civil action so allowing the renewal of the company's licence. The judge will now give notice of the settlement of the action to IMAP and the company anticipates the licence to be issued soon thereafter, valid for three years and uncapped in terms of tonnages permitted to be shipped in that period (the original licence was capped at 600,000 metric tonnes).
Commenting on the judgment, William Lamarque, chief executive officer of the company, said: "We are delighted to have put the legacy environmental issues behind us in a settlement that is manifestly fair to all parties. This represents a giant step forward in the commercialization of our manganese stockpiles at SdN and a key corporate uncertainty removed. The mayor and Municipality of SdN have been highly energetic and effective supporters of our efforts to start work on the stockpiles and we look forward to reciprocating this with our financial settlement and by contributing where we can to local good causes."
We seek Safe Harbor.