Griffin Mining subsidiary clears major hurdle in Chinese mine licence process

Griffin Mining announced on Wednesday that its Chinese operating subsidiary, Hebei HuaAo Mining Industry Company, has completed the “most important” phase in the granting of the new mining licence over Zone II of the Caijiaying Zinc-Gold Mine.

The AIM-traded firm said that on 11 July, a legally binding contract was signed with the Hebei Department of Land and Mineral Resources, as authorised by the Beijing Ministry of Natural Resources, pursuant to the Interim Administrative Regulation for Proceeds Collection from the Transfer of Mineral Rights.

Hebei HuaAo had become the first company to proceed under the new regulation governing the transfer and conversion of mining tenements.

It would now be entitled to conduct mining activities in Zone II, and would be prioritised in its final documentation approvals for the conversion of the exploration licence over Zone II into a mining licence in compliance with relevant national policies.

“The Chinese legal framework in the mining sector has changed substantially over the last 20 years since Griffin acquired and developed the Caijiaying Zinc-Gold Mine,” said chairman Mladen Ninkov.

“Over the last five years, whilst we have actively pursued the new mining licence, the relevant regulations have changed several times resulting in substantial delays in the final licencing application.

“We are delighted to say that we have finally been able to see the light at the end of this very long tunnel.”