Everlast Minerals Ltd has detailed its environmental and operational risks associated with its mining projects in Bangladesh, including the Gaibandha Mineral Sands Project and other exploration activities. The company’s directors report highlights the challenges posed by limited infrastructure, regulatory compliance, and the impact of seasonal monsoons on its operations.
Material actions and disclosures
The company currently holds mining leases for the Gaibandha Mineral Sands Project, covering a total area of 2,395 hectares. It has also been granted exploration licences for the Kurigram and Pabna Mineral Sands Projects, each covering approximately 4,000 hectares. The company is in the process of conducting trial production at Gaibandha and has completed its first export shipment of mineral sands concentrate to China.
Everlast Minerals Ltd has secured the necessary licences, consents, and approvals to access and mine the Gaibandha Mineral Sands Project. However, it does not currently have licences to explore, access, and/or mine the other projects, which are currently exploration licence applications.
The company’s activities are subject to environmental laws inherent in the mining industry and those specific to Bangladesh. It intends to conduct its activities in an environmentally responsible manner and in compliance with all applicable laws. However, the company acknowledges the risk of accidents or unforeseen circumstances that could subject it to extensive liability.
Environmental approvals may be required from relevant government or regulatory authorities before activities may be undertaken which are likely to impact the environment. Failure or delay in obtaining such approvals will prevent the company from undertaking its planned activities.
The company is also aware of the risks associated with climate change regulation and the potential for increased regulation and government policy designed to mitigate climate change to adversely affect its cost of operations and financial performance.
Seasonal monsoons in Bangladesh pose a significant risk to the company’s operations. Major rainfall events may result in operational delays, damage to mineral properties, facilities, equipment, or other properties, and indirect impacts from supply chain disruption.
Forward commitments
The company plans to continue investing in its exploration and development programs, anticipating further losses in the immediate future. It aims to move into the mining of mineral sands in relation to the three mining leases granted at the Gaibandha Mineral Sands Project in the short to medium term once necessary preparation work is completed.
Everlast Minerals Ltd will continue to manage expenditure against the sequencing of commissioning, production optimisation, exploration, and commercial work programs.
The report was prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards.
Everlast Minerals Ltd’s directors are responsible for the preparation of the financial report and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.