Gold mining development group Hambledon Mining has encountered delays and fines while trying to expand operations in Kazakhstan.
The complications followed a proposed $5 million acquisition deal with Akmola Gold to purchase Akmola’s Tellur and Stepok deposits, located near Hambledon’s Sekisovskoye mine. Hambledon first unveiled the plan in September, but due to problems with Kazakh authorities the transaction has yet to be finalized, KazWorld.info reports.
According to Hambledon, Kazakhstan’s state mining firm plans on taking a pre-emptive stake in the deal, and certain permits and waivers have yet to be granted by Kazakh authorities.
“Despite our disappointment not to have been able to reach a point where we could announce that we were able to proceed with Akmola Gold LLP, our resolve and determination to continue with the development of the UG mine at Sekisovskoye is maintained,” Hambledon CEO Tim Daffern said, according to KazWorld.info.
Hambledon is currently in the process of appealing a $5.9 million fine relating to the December rupture of a tailings dam at Sekisovskoye. The ruptured dam caused the company to lower its 2012 gold production targets from 30,000 ounces to 26,000 ounces.
Hambledon has been operating its Sekisovskoye open-pit mine in Kazakhstan since 2008, processing an estimated 850,000 tons of material each year.