China New Energy says Sunbird close to getting Zambia approvals

The company said Sunbird has been advised by the Zambia Development Agency that terms of the Investment Promotional and Protection Agreement with regard to the bioethanol project in the Luapula province are expected to be signed shortly.

The AIM-listed engineering and technology solutions provider, which signed a memorandum of understanding with Sunbird last year to work on biofuel refineries in Zambia and Zimbabwe, said this was an important step in the process in the commencement of the project.

However, China New Energy cautioned there are a number of other project milestones to be concluded before a formal agreement is put in place between Sunbird and the company.

These milestones include an audit of the submitted draft feasibility study and conclusion of the environmental impact assessment which is underway.

“It remains the intention of all parties to commence the project in 2016, as previously indicated, but this will be subject to conclusion of the milestones noted above and to financial closure,” the group said.

At 1255 BST, shares were up 83% to 2.38p.