The Asia Miner

JAN-MAR 2019

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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the asia miner • volume 16 • issue 1 18 REGIONAL FOCUS: Central Asia & Mongolia The Mosaic Company has entered into a memorandum of understanding (MoU) with Sinochem, China's largest agricultural inputs company, for the sale of its phosphate rock and phosphate ferঞlisers, including premium products. "We are pleased to build on our promising relaঞonship with Sinochem," said Mosaic President and CEO Joc O'Rourke. "Sinochem is developing a Modern Agriculture Plaorm for China, and we at Mosaic look forward to partnering with Sinochem to contribute to this important progress for Chinese farmers." The MOU establishes a mutually beneficial relaঞonship through which Mosaic could contribute to Sinochem's success – one of China's biggest agricultural inputs company and integrated modern agricultural service operators – by providing both experঞse and products. Terms and condiঞons of the purchases are to be outlined in a separate contract between the two parঞes. "We believe this agreement can lead to meaningful value for Mosaic, Sinochem and China's farmers," Mr. O'Rourke said. The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. It is a single-source provider of phosphate and potash ferঞlisers and feed ingredients for the global agriculture industry. Signing of the MoU follows an announcement in December 2018 made by Mosaic of the relocaঞon of its Yantai plant. The new Mosaic Yantai plant (YMF) facility has a number of exciঞng features and capabiliঞes, including an advanced Soil Lab. The YMF team tests up to 1,200 soil samples annually as part of work to establish and promote the concept of balanced crop nutriঞon in China. The 25,000-sq.[. plant is also equipped with a modernised logisঞcs tracking system to conঞnue culঞvaঞng safer, more efficient operaঞons. The new facility is sঞll located in Yantai port a[er relocaঞon, and the YMF team will be able to take full advantage of logisঞcs and transportaঞon of port-centred industry, in combinaঞon of Mosaic China blending and compacঞon capacity, to play a posiঞve role in internaঞonal trade shipment. 马赛克公司已经加入中化集团的协议备忘录(MoU),中化 集团是中国的最 大的农业输入公司销售磷酸盐岩和磷酸盐肥料销售,包 括其它长久的优质的产品。 马赛克公司的总监兼执行总裁Joc 奥罗克说:"我们非 常乐意和中化集团建立长久并充满希望的合作关系。中化集 马赛克公司未来和中化集团的合作,也为中国农业从事者做 出了重要的进展。" MOU通过马赛克能帮助中化取得成功的潜在性建立了互惠 互利的关系 – 其中一个是中国最大的农业输入公司和集 成现代农业服务运营商 – 两者都提供了专业知识和产品。 奥罗克先生说:"采购的条款和条件将在双方的另一份 农民带来非常有意义的价值"。马赛克公司是世界上主要的 Mosaic makes strides into China 马赛克大步跨入中国 Chaarat Gold has agreed to acquire Kapan gold mine in Armenia from Polymetal, one of Russia's largest gold and silver producers. The US$55 million deal, which took part at the end of Q4 2018, is part of Chaarat's intenঞon of becoming a major regional player in Central Asia, with an annual producঞon of 1 million ounces it aims to reach through acquisiঞons. "The sale of Kapan is a step towards shrinking Polymetal's asset base to focus on large long-life projects", said Vitaly Nesis, Group CEO of Polymetal. "The transacঞon will have immediate benefits as it is expected to improve our cost posiঞon and reduce leverage." The total consideraঞon payable for Kapan will be US$55 million, subject to working capital and other customary adjustments. This represents US$99 per ounce of gold equivalent (GE) Ore Reserves. The consideraঞon will be payable in cash upon closing of the Transacঞon, with an opঞon for Chaarat to elect to saঞsfy up to US$5 million of the consideraঞon in Chaarat's 2021 Converঞble Notes. With Kapan being the smallest and highest-cost mine in Polymetal's porolio, the sale of Kapan will advance Polymetal's strategy of focusing on large-scale and long- life operaঞons. Polymetal acquired Kapan in April 2016 for US$38 million including US$9 million fair value of the Net Smelter Return royalty on future gold producঞon. Chaarat Gold scoops Kapan gold mine

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