Geovic Mining Corp. is determined to press ahead with its cobalt-nickel-manganese project in Cameroon, despite delays linked to the global financial crisis, the company's CEO said.
The Toronto-listed company owns 60 percent of Geovic Cameroon (GeoCam) which was granted a mining permit in 2003 for Nkamouna, one of the world's largest primary cobalt-nickel-manganese deposits.
"The crisis has adversely affected mining projects around the world, but we came here to assure the prime minister of our determination to proceeed with our project in the country," John Sherborne, Geovic's chief executive officer, told reporters.
Sherborne was speaking late on Friday after meeting Cameroon's Prime Minister Ephraim Inoni.
"Frankly, a lot of mining projects in the world have been slowed down almost completely now and we thought it was important to assure him that that is not the case with us."
The project, seen by the central Africa country as a key element in its bid to develop the mining industry, is dependent on financing from U.S. banks which are increasingly reluctant to lend money as the international financial crisis deepens.
Construction was due to begin this year with mining starting in 2010, but Geovic Cameroon told Reuters last month the project would be delayed by at least a year.
Geovic expects to produce 4,200 tonnes of cobalt and 2,100 tonnes of nickel annually for at least 21 years from the deposits which it estimates at 52 million tonnes of ore.
This would make Geovic one of the world's biggest producers of cobalt, a hard and durable metal used in aircraft engines and increasingly in batteries for hybrid cars.
Source: Reuters
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