Moly Mines Limited

Moly Mines Limited

September 08, 2010 09:00 ET

Moly Mines Limited: Spinifex Ridge Iron Ore Project Award of Camp Facilities Contract to Community Group

TORONTO, ONTARIO--(Marketwire - Sept. 8, 2010) - Moly Mines Limited (TSX:MOL)(ASX:MOL) has awarded a multi- million-dollar contract to manage the Spinifex Ridge Iron Ore Project mining camp to ESS Pantarlangu Pty Ltd, a joint venture between the traditional owners and custodians of Spinifex Ridge and the Compass Group.

The contract award was celebrated today at a signing ceremony attended by representatives of the Njamal people, Moly Mines Managing Director Dr Derek Fisher and the Chairman of the Hanlong Group Mr Liu Han.

ESS Pantarlangu – a joint venture between Pantarlangu Pty Ltd (40%) and Compass Group (60%) - was the successful bidder for the contract to provide accommodation management services at Spinifex Ridge, 45km north east of Marble Bar. The agreement is the first contract to be awarded to a Njamal-related entity under Moly Mines' Land Access Agreement with the traditional owners.

The joint venture contract, which extends for the life of the project, supports indigenous participation in the supply of accommodation management services including catering, cleaning, ground maintenance and other aspects of maintaining the village.

The Compass Group was formed in the UK in 1987 and has operated in Australia since 1997. Compass has a long history of providing accommodation and catering services to remote mining locations around Australia, with a strong presence in the Pilbara. The company has an Indigenous workforce of 300 people across Australia.

The contract is scheduled to commence in mid-October 2010.

Dr Fisher said the contract would guarantee indigenous involvement at the 1Mtpa iron ore mine and participation in a significant operations' contract. The mine is expected to ship its first ore from Port Hedland in December this year.

Mr Liu said that Moly Mines looked forward to enjoying a long and successful partnership with ESS Pantarlangu.

Judy Coppin, who sits on the board of the ESS-Pantarlangu JV, welcomed the opportunities for involvement in their own country as provided for by Moly Mines and is hopeful this example of positive indigenous and community participation can be replicated in other mining companies.

This news release includes "forward-looking statements" as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines' control. These forward- looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding Moly Mines' future expectations. Readers can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "predict," "project," "risk," "should," "will" or "would" and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines' actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of Moly Mines' suppliers and service providers to fulfill their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labor shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.

Contact Information

  • Moly Mines Limited
    Natalie Frame
    Investor Relations
    +1 416 777 1801 or +1 416 371 7541
    Moly Mines Limited
    Derek Fisher
    Managing Director
    +61 8 94293300