Gold project costs Lonrho pounds 15m

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The Independent Online
Lonrho is making a pounds 15m exceptional provision in its half year figures for costs associated with its Amantaytau Uzbekistan gold project, which it and partner Anglo American of South Africa have decided to abandon. Lonrho said that it has concluded a six-month review of the exploration costs of the project and the partners have decided to scrap it. The review was prompted by increases in costs in the mining supply industry, the price of gold and local factors, and was conducted jointly with Anglo American.

Lonrho's chief executive, Nicholas Morrell said "The review demonstrated that there had been a substantial increase in both capital and operational costs and a resultant reduction in the projected return." He said Lonrho "remains interested in the project" and is cooperating with the Uzbek Government and other potential partners in order to establish a basis for the development of Amantaytau, which has more than five million ounces of gold reserves.

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