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China Nonferrous Gold lands consultancy contract for subsidiary
China Nonferrous Gold on Friday authorised its subsidiary Kryso Resources to enter a supplementary consultancy contract for tailing ponds at its projects in Tajikistan.
The AIM traded Mineral exploration and development firm said the contract with original contractor China 15th Metallurgical Construction Group (15MCC) is due to material changes to the planned flotation tailing ponds in the construction site.
The new contract price is expected to be significantly lower than that of the original due to falling labour costs and reduced costs of materials required for the construction project such as cement, sand, gravel and steel bars.
The company said China Nonferrous Metals International Mining, with whom the firm holds consultancy contracts, will no longer act as its intermediary due to "simplification" and potential "cost and contract performance efficiencies".
Tailing ponds are dam and dyke systems used for the capture of oil and sand tailings, with knowledge and identification of compounds an essential part of the handling and monitoring of the materials.
Construction works commenced in early April, as well as works on a backfill station and camps, with all equipment for the backfill station also having arrived on-site.
As of 1201 BST, China Nonferrous Gold's shares were down 2.91% at 7.50p.