Phosphate mining company AsiaPhos on Monday said it met the officials from the Sichuan provincial government in China regarding its mining operations and they have indicated their preference for an amicable settlement.
Last month, AsiaPhos said had it received a request for undertaking to vacate and rehabilitate two of its mining sites within the Jiudingshan Nature Reserve in China's Sichuan Province.
The company said it does not intend to sign the undertaking and may have to pay a compensation amount of 2.2 million yuan (S$449,680) for the mines if rehabilitation works are not completed by November 30.
AsiaPhos on Monday said that the company and the Sichuan provincial government are intending to negotiate terms which would provide AsiaPhos with continued access to sufficient phosphate rocks, as well as possible compensation options or the compensation amounts/terms as a result of the company vacating three mines in Sichuan province - Mine 1, Mine 2 and the Feng Tai mine.
The company said it is working on a proposal that will safeguard the value of the group's business and assets, and will continue to engage Sichuan officials in negotiations for a definitive settlement agreement.
AsiaPhos shares were down 1.4 percent at S$0.07 on the Singapore Exchange.