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Trafigura further lifts stake in EMED Mining

Last updated: 09:42 07 Nov 2014 GMT, First published: 10:42 07 Nov 2014 GMT

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Commodity trading giant Trafigura has further lifted its stake in EMED Mining (LON:EMED), it has been revealed.

On Monday, November 5, Trafigura, through an indirect subsidiary, bought around 19.5mln shares and now holds around 19.35% of the stock.

Trafigura, which has been speculated as a suitor for EMED, is making its presence felt at the firm having built the stake since vital permits to advance the planned redevelopment of the Rio Tinto copper mine in Spain were awarded in March.

Last month, it has called for an extraordinary general meeting (EGM) to ask shareholders to remove seven directors, including the executive team and all independent non-executive directors, and appoint four new directors chosen by Trafigura.

EMED's new management continues to make progress to bring Rio back into production.

It is now finalising the remaining permits required for the project and the final mining permit and approval of the final restoration plan is expected before the end of the year.

Trafigura has mining and processing operations near Rio Tinto.  Its MATSA operations, which is a 2.2mln tonne per year underground mine, is presently the only producing mine in the Huelva area of Spain’s Andalucia region. It produces copper, zinc and lead concentrates.

It is working to expand this operation with a new treatment plant, which is expected to double output. Trafigura describes this as a major investment which will create one of Spain’s largest mining operations.

EMED shares are up 7.41% Friday to 7.25p.

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