Serabi Mining: IBAMA Suspends Operations At Palito >SRB.LN

14th Jun 2010 15:58

LONDON (Dow Jones)--Serabi Mining PLC (SRB.LN), an AIM-traded gold exploration and production company, said Monday that following a visit from a representative of the Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renovaveis, or IBAMA, the Federal Environmental Agency, Serabi Mineracao Ltda, the company's wholly-owned subsidiary and operator of the Palito Mine has been held by IBAMA to be in non-compliance with two of the terms of its Operating License. MAIN FACTS: -The two alleged breaches are that as part of the conditions of the Operating License, SM Ltda had not submitted within the required time-frame, a Cadastro Ambiente Rural and a monitoring program of flora and fauna. -Accordingly, IBAMA has issued a suspension notice on Serabi's mining activities at Palito. -As a result of the suspension notice, SM Ltda has suspended the limited open pit mining activities of the surface oxides. -The Palito underground mine remains on care and maintenance. -All employees have been retained and planning for the Company's exploration program is unaffected for the time being. -IBAMA has also assessed a fine of Brazilian Reais 3,597.300 against Serabi Mineracao Ltda. -There has been no criticism of Serabi's operational practices and the Company has been advised that the penalties imposed are disproportionate to the alleged breaches and the past environmental record of SM Ltda. -Company will this week lodge an appeal with the higher bodies of IBAMA against both judgments and is confident that the suspension notice will be lifted soon and if any fine is ultimately considered due it will be at a significantly lower level. -Shares at 1455 GMT down 0.23 pence, or 14.1%, at 1.38 pence. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires June 14, 2010 10:58 ET (14:58 GMT)