Business
Palito update - IBAMA suspension notice
Palito update - IBAMA suspension notice.
About this update from Serabi Gold Plc
[{"type":"text","content":"\n \n\n\n\n\n SERABI MINING plc\n (\"Serabi\" or \"the Company\")\n\n Palito update - IBAMA suspension notice\n\nThe Board of Serabi Mining plc, the AIM-traded gold exploration and production\ncompany, announces that following a visit from a representative of IBAMA\n(Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renovaveis), the\nFederal Environmental Agency, Serabi Mineracao Ltda (\"SM Ltda\"), the Company's\nwholly-owned subsidiary and operator of the Palito Mine has been held by IBAMA\nto be in non-compliance with two of the terms of its Operating Licence. The two\nalleged breaches are that as part of the conditions of the Operating Licence, SM\nLtda had not submitted within the required time-frame, a Cadastro Ambiente Rural\n(CAR) and a monitoring programme of flora and fauna.\n\nAccordingly, IBAMA has issued a suspension notice on Serabi's mining activities\nat Palito. As a result of the suspension notice, SM Ltda has suspended the\nlimited open pit mining activities of the surface oxides. The Palito\nunderground mine remains on care and maintenance. All employees have been\nretained and planning for the Company's exploration programme is unaffected for\nthe time being.\n\nIBAMA has also assessed a fine of Brazilian Reais 3,597.300 (approximately\nUS$2million) against Serabi Mineracao Ltda (\"SM Ltda\"), the Company's wholly\nowned subsidiary.   There has been no criticism of Serabi's operational\npractices and the Company has been advised that the penalties imposed are\ndisproportionate to the alleged breaches and the past environmental record of SM\nLtda.\n\nThe Company will this week lodge an appeal with the higher bodies of IBAMA\nagainst both judgments and is confident that the suspension notice will be\nlifted soon and if any fine is ultimately considered due it will be at a\nsignificantly lower level, reflecting the circumstances and the nature of the\nalleged breach of the Operating Licence. SM Ltda has already made appropriate\nrepresentation to the State office of IBAMA in Belem, to senior officials of\nSEMA and to the Secretary of Mines. The Directors are confident that this appeal\nwill be successful.\n\nSM Ltda has in accordance with Brazilian regulations been dealing with SEMA\n(Secretaria de Estado de Meio Ambiente) the Environmental Agency for the State\nof Pa...