Council will transfer assets upon receiving proper documentation: Garry


LOLE Mining Ltd, a local mining operator with the mining lease for the Tolukuma gold mine in Goilala, Central, must submit proper documentation to the Mining Advisory Council (MAC) on their proposed technical activities, an official says.
Mineral Resources Authority (MRA) managing director Jerry Garry said that MAC has to receive proper documentation to allow the transfer of assets to the miner and also grant an extension of the mining lease which expires soon.
Garry told The National that a previous application given by Lole Mining for the transfer of assets and extension of mining lease fell short of what was expected.
“The mining advisory council in its last deliberation last year looked at the application,” Garry said.
“The liquidator is now the legal custodian of the property.
“Upon commercial arrangements that satisfy the liquidator in terms of paying the creditors, the liquidator will then advise us that he has certified that all the liquidation processes have been met and he will then request MRA for the transfer of the properties to the new owner,” he said.
Garry said while the liquidator was looking to certify Lole Mining, a local company with good partnerships with well-established financiers and technical people overseas, the documentation that reached the council was not to the council’s expectation.
“We have advised the new owner to resubmit proper documentation to the council so we can engage in the transfer,” he said.
“At the same time, the mining lease will expire next year, so we are saying if they can get the proper documentation for an extension application, the council will deliberate on it.
“We really want to see the proposed technical activities that they came to undertake, that must be properly documented to satisfy the council that what they are going to do is reasonable so the council can allow Lole mining to apply for the extension.”
Garry said the liquidator would apply for the transfer of the assets to Lole mining but with the mining lease expiring in a year they need to apply for an extension of term.
“If they don’t apply for extension of term with one year left, it will create uncertainty and those financiers who want to put money on the ground to reopen the mine will be uncomfortable and may not release the money,” he said.
“So in the interest of securing the finance necessary to reopen the mine, the extension of the mining lease is critical.”