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Solway Finance Ltd

Solway Finance Ltd
Based in Cyprus
Active in Peru, Russia, Indonesia, West Papua, Laos, New Caledonia, Macedonia, Ukraine, Argentina, South Africa
Targeted base metals, energy fuels, precious metals

Solway Finance Ltd is a subsidiary of Solway Investment Group, based in Cyprus, which has major interests in mining, non-ferrous metals, chemicals, cement industries and real estate.

Solway conducts its business in Russia, the CIS countries, Central and Eastern Europe and Latin America. Its key minerals' operations are located in Peru, Laos, Indonesia, Ukraine, Macedonia and Russia.

  • In 2007, Solway opened an office in Lima, Peru "to represent the Company in Peru, Chile and Argentina and to engage in an active search for acquisition targets among the base metal junior miners (with the focus on copper, zinc and lead)". It currently "holds strategic stakes in several junior copper developers in Peru and it also pursues exploration programs in a number of greenfield projects on its own" [Solway website, accessed 20 August 2011: http://www.solway.ru/ ].
  • In October 2009, Solway arranged to purchase additional shares (up to 18.8%) in TSE-listed Chariot Resources Ltd, in order to fund the company’s huge Mina Justa copper project in Peru [Business News Americas, 2 October 2009; MJ 9 October 2009]. However, according to the Group, its investment was sold the following year to "another mining fund" [Solway website, op cit].
  • In 2003, Solway acquire the Pobugsky Ferro-Nickel Plant in Ukraine, which had been "idle for more than 3 years due to unprofitable processing of low-grade nickel ore from the local open pits".
  • The Group claims it was "able to find a solution by entering into long-term partnerships with suppliers of high-grade nickel ore from Indonesia and New-Caledonia and metal trading companies in Europe" - as a result of which "PFP is one of the most efficient ferronickel producers in the world"[Solway website, ibid].
  • Having taken over the Ukraine plant, Solway set out to "secure its own reserve base of lateritic ore" - eventually leading to "the strategic decision of developing an independent ferronickel plant in Indonesia". The Aquila nickel project includes a number of a number of exploration areas in Indonesia, held by Solway via a financial SPV (Special Purpose Vehicle):the most advanced of these is at Maba, on Halmahera Island.
  • In order to fuel the Indonesian ferronickel smelter, Solway set up a wholly-owned 400MW power plant, which is fueled by thermal coal dug from Aquila's own mining concession in West Papua.
  • Another East European acquisition was effected in 2005, when Solway took over the SASA Zinc & Lead Mine in the Republic Of Macedonia, which had been mothballed in the late 1990s.
  • The same year (2005), Solway obtained an exploration license for an 50.8 square km gold-rich area on Urup Island (part of the Kuril Islands in Russia), and obtained a mining licence from the state in March 2010 [Solway website, ibid]. Solway has a 74% participating interest in the project.
  • In October 2009, Solway Investment Group, also concluded an Exploration Agreement with the government of Laos, to prospect and explore for zinc and lead in a 165 square km tract of land.
  • The following year, in May 2010, the Group paid US$30 million for shares in Platmin Ltd,which is a major platinum group metals (pgm) miner in South Africa's Bushveld: Platmin is listed both on the TSX and has a secondary listing on London's AIM [Solway website, ibid]
  • In May 2011 Solway Group announced it had invested around US$ 500,000 in the Coro Mining Corp, whose key asset is the San Jorge Copper project in Argentina's Mendoza province [Solway website, ibid].

However, three months later, the Provincial Legislature of Mendoza voted against the ratification of Coro's Environmental Impact Declaration ("EID") - a decision which prompted the company to declare it would "now consider its alternatives to seek legal redress and compensation through the Argentinean and international courts" [Marketwire 25 August 2011].

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