Trigon, Xinhai Sign Kombat MoU

Trigon Metals signs Shandong Xinhai Mining for Namibian Project

Mining company Trigon Metals has signed a memorandum of understanding with Chinese contractor Shandong Xinhai Mining Technology & Equipment for the development of Trigon’s Kombat project in northern Namibia.
The deal will see Shandong Xinhai invest up to 10 percent of the capital requirements of the copper mining project in return for the right to be appointed as the engineering, procurement and construction contractor, responsible for breakbulk transport during the development phase.
“We are extremely pleased to have advanced our plans for the restart the Kombat Mine. In partnering with Xinhai, we have gained access to both the funding and technical services necessary for the restart of mining operations at Kombat,” said Jed Richardson, President of Trigon.

Open Pit Operations
The scope of work at the vast open pit mine in the Otavi Mountain lands will include engineering design, acquisition or leasing of land surface rights, refurbishment and start-up of Kombat’s existing processing plant

 “Xinhai has excellent credentials in implementing projects of this nature and we look forward to a long term relationship as we execute our plans to build Trigon into a mid-tier copper producer,” Richardson said.

Namibia Mining Sector Opportunities
While Namibia has seen mining activity since the 1980s, new data and technology, particularly in the copper sector, is opening the way for renewed activity, strengthening the outlook for breakbulk provision across the country.

“Very recent geological investigations have indicated that a significant re-interpretation of the geological model and emplacement of copper mineralization at Kombat Mine is being formulated,” explained Bill Nielsen, CEO of Kombat Copper.

Investment Boost
As part of the Trigon deal, Xinhai will also assist in securing up to an additional 80 percent of capital requirements via debt financing from Chinese export credit facilities. 
The mining sector in Namibia has seen a strong uptick in investment in recent years, driven by the country’s immense resources and a return to more favourable political conditions.

Alongside one of the world’s most prospective copper regions, the country is also home to extensive production of uranium, gold, diamonds and lead. Trigon Metals is a publicly traded Canadian exploration and development company with its core business focused on copper operations in Namibia.

Photo:  Open pit mine. Credit: Wikimedia