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Red Rock Resources Plc. (RRR), a U.K. gold-exploration and mining company, said it rejected a Kenyan parliament recommendation that a license held by a subsidiary in the East African country be canceled.
The Daily Nation, a Nairobi-based newspaper, reported earlier today that lawmakers recommended Mid Migori Mining Co.’s permit be withdrawn after it failed to meet the requirements for an exclusive mining license. David Mugonyi, a spokesman for parliament, wasn’t immediately available for comment when Bloomberg called him twice today.
“There has been very effective exploration by Mid Migori,” Red Rock Chief Executive Officer Andrew Bell said in a phone interview today from London. “Nobody can say and nobody has said we have not done a good job.” Red Rock will “move forward rapidly with the development” of its project in western Kenya, he said.
Red Rock said in October it would increase its stake in Mid Migori Mining, a closely held Kenyan company, to 75 percent from 15 percent by financing a feasibility study for a gold mine. The London-based company acquired the stake in Mid Migori in 2009. Since then, the company has invested more than $10 million in the project, situated 264 kilometers (164 miles) west of Nairobi.
Red Rock expects “large-scale” production at the site to start by 2016 and initial findings indicate the mine may produce as much as 50,000 ounces in the first three to four years, Bell said in October.
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