Breakwater Resources, a Canadian mining concern, has announced that it is dropping plans to develop the Oued Amizour zinc project in Algeria, located near the port city of Bejaia, after amendments to the country's mining law rendered the venture uneconomical.
A statement released by Breakwater Resources, the company said that negotiations with the Algerian government had broken down on a deal that would have given it a 90 percent interest in Oued Amizour.
Speaking to Reuters, a company spokesperson said that the change in the mining law had made it impossible to structure the deal in accordance with what had earlier been agreed to.
She said negotiations had been predicated on a five-year tax-free period, preferential power, transportation and port rates and repatriation of money. When those conditions were present, the projects economic basis was significantly altered.
But Breakwater Resources has not lost interest in Oued Amizour. The spokesperson said that, if that, if Algeria decided to auction the mine, Breakwater Resources will tender an offer. – (Albawaba-MEBG)
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