Sunkar Resources hits target ahead of schedule

Dec 08. Stock Market Wire

Sunkar Resources hits target ahead of schedulePhosphate miner Sunkar Resources plc said it has achieved its revised 2010 mining target of 1m tonnes of ore earlier than planned.

In an update on operations and development of its Chilisai Project in Kazakhstan, the company said that so far 236,000 tonnes of 17% concentrate had been produced as feedstock for the milling complex.

It was currently commissioning a new milling and loading complex.

Sunkar said it was negotiating with farmers in Kazakhstan and Russian fertiliser plants on phosphate rock sales for 2011 and had applied for the inclusion of Chilisai direct application rock (DAR) in the Kazakh subsidised fertiliser list.

The Chilisai DAR Project has been included in the Kazakhstan government’s support programme for accelerated development. Potential benefits include tax reduction, lower customs duties, fast-track document turnover with the authorities and additional infrastructural grants.

Temir Service LLP has negotiated a $15m credit line from ATF Bank, the Kazakhstan member of UniCredit Group, to support operations during 2011.

Sunkar has established a new wholly-owned subsidiary in Kazakhstan, Chilisai Chemical LLP, which will build and own the future fertilizer plant.

Preliminary results from the Bankable Feasibility Study were expected to be released before the end of 2010.

CEO Serik Utegen said, ‘We are delighted to have finished construction of the first line of milling and loading complex, which we plan to commission by end of the year which will enable us to manufacture standard compliant DAR.

‘This will enable us to commence DAR sales next year. I believe that once Chilisai DAR, now an officially approved DAR product, starts to be supported by state subsidies, our sales potential for the 2011 planting season will be significantly improved.’

Sunkar shares were up 0.75p at 34.75p.