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Additional Information
Market: ASX, FRA
Sector: General Mining - Rare Earth Minerals
Epic: .GIP
News: Latest news
Web Site: Gippsland Limited
Other Articles: 06-01-201013-11-200930-10-2009

Gippsland Limited

Gippsland focuses on world-scale projects which have been over-looked by major resource groups. Projects which have undergone detailed exploration and which have the potential to be brought into production quickly are a prime target for the Company. Gippsland's success in this area is due in part to the Company's philosophy of entering into equitable joint venture arrangements with overseas nationals. The Company's prime assets are the 40 million tonne Abu Dabbab and the 98 million tonne Nuweibi tantalum-tin projects located in the Central Eastern Desert of Egypt, adjacent to the western shore of the Red Sea.

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Tuesday, November 25, 2008

Gippsland Gets German Govt Credit Guarantee for Abu Dabbab Tantalum Project

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Gippsland Ltd said it has received a credit guarantee from the German government for its 44.5 million tonne Abu Dabbab tantalum project in Egypt.

The company is currently in project finance negotiations with the German banks KfW IPEX-Bank GmbH and DEG - Deutsche Investitions und Entwicklungsgesellschaft mbH.  Both are part of KfW Bankengruppe, which is 80 percent owned by the German federal government, and 20 percent by the country’s federal states.

Gippsland said in a statement the German Inter-ministerial Committee led by the Ministry of Economics and Technology has confirmed the eligibility of the Abu Dabbab Project for an Untied Term Loan.  

This facility provides German lenders insurance against commercial and political risk, which in turn enables German banks to offer project finance at a reduced interest rate. The German government provides Untied Term Loan guarantees for loans awarded by German lenders to debtors in emerging and developing countries.

Gippsland executive chairman Jack Telford said: “The eligibility of Abu Dabbab for this guarantee reflects the project's outstanding importance for the Federal Republic of Germany in securing a reliable long term supply of this vitally important strategic metal. “

Gippsland has completed a definitive feasibility study which determined that the Abu Dabbab Project will produce 650,000 pounds of tantalum pentoxide per annum plus 1,530 tonnes of tin metal over a likely mine life of 20 years.  

The company has an offtake agreement with German tantalum group HC Starck GmbH for the supply of 600,000 pounds of tantalum pentoxide per year for 10 years which accounts for 92 percent of the project's total tantalum production over this period. The tantalum pentoxide will be supplied in the form of a high purity synthetic concentrate or SynCon.

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