Ormonde hopeful of mining concession for tungsten project

Ormonde Mining says the granting of a mining concession for its flagship tungsten project in southern Spain is imminent.

A late-stage review of historic concessions at the Barruecopardo site in Salamanca meant the award was delayed, but Ormonde understands this has now been completed, which should ensure the granting of the mining permit.

The exploration firm yesterday reported losses for the six months to the end of June of £1.1 million, compared with £943,000 for the equivalent period last year.

Cash at the half-year stage stood at £1.56 million.

"We have made very significant progress at our Barruecopardo Project during the first half of 2014, including the receipt of the environmental permit, the engagement of Swedbank as debt advisors in relation to the financing package for the project and the agreement of a five year off-take contract, with Noble Group, for the tungsten concentrate to be produced," chairman Michael Donoghue said.

In the first half of the year, Ormonde said tungsten prices traded between around $360 and $375 per metric tonne unit, and is currently trading at $355.

“The continued resilience of the tungsten price relative to many metals in a time of constrained global GDP growth is most encouraging,” it added.