25 November 2021
MMG Limited (MMG) welcomed the announcement from New Century Resources Limited (New Century) that it has signed a new environmental bond facility for the Century mine.
The New Century bond allows the cancellation of the remaining bank guarantees provided by MMG since the 2017 divestment of the Century mine. These bank guarantees were to support environmental and other obligations to the State of Queesland and other parties. This transaction is expected to result in a Net Profit After Tax impact for MMG of between US$140 million and US$150 million in the current financial year.
MMG CEO, Geoffrey Gao congratulated the New Century team on their successful refinance and equity raising and welcomed the intent to assume the financial security for the remaining rehabilitation obligations.
“This milestone is an important step in delivering on the vision set in 2017 to create a new life for Century mine”, he said.
“Over the past four years, reprocessing of mine tailings has progressively reduced the environment footprint and rehabilitation liability for the site while generating employment and training opportunities and driving economic and social contribution to the lower Gulf region.”