China Nonferrous Gold terminates construction contract with Shanxi

27th Jun 2014 14:31

China Nonferrous Gold has ended its contract with Shanxi No.3 Power Construction Company after it was unable to obtain the needed license to follow through with the project.The mineral exploration company, which is currently developing the Pakrut gold project in Tajikistan, has replaced the construction contract with a consultancy arrangement worth at an estimated cost of around RMB 150m ($23.88m). The cost of the consultancy agreement will be satisfied by a drawdown under a loan agreement.The group's subsidiary Pakrut is expected to assume the role of contractor after having the relevant licenses to construct the external power supply network. The power line project includes a 73 kilometre long transmission line with 266 iron towers and two substations in Hamza and Pakrut. Shanxi will provide consultancy services in constructing the network.As of 13:53 the share price had risen by 3.31% to 30.75p.WS