BRGM walks out of foreign JV with India's Hindustan Zinc
NEW DELHI - International mining giant BRGM (La Source) of France has walked out of the Vietnamese
joint venture with public sector Hindustan Zinc Ltd (HZL) for exploration of gold.
BRGM recently called off its joint venture with the PSU as a result of a change in its priorities, official sources said here.
BRGM officials could not be contacted for their comments.
The mining major is understood to have told HZL that exploration activities were no longer a priority for BRGM as a result of
the glut in the prices of major minerals on the London Metals Exchange (LME).
HZL had entered into a three way joint venture with BRGM and Vietnam National Gems and Gold Corporation (VIGEGO)
for commercial exploration, feasability study and to undertake the Pac Lang Gold Project in Vietnam.
BRGM had a majority 40 per cent equity in the project with HZL chipping in with 30 per cent. The remaining 30 per cent was
left with VIGEGO.
Sources also added that with BRGM having pulled out of the project HZL was left to go it alone with the Vietnamese partner
for the moment. However, they did not rule out the possibility of another partner being roped in at later date.
Despite the pullout HZL has decided to continue with the project on the basis of an unbiased opinion given by BRGM. The
mining giant is believed to have advised HZL on continiung with the project as it thought that there was prospect of finding gold.
Asia Pulse - December 29, 2000.
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