Aviva will lose P64m it spent on development
Aviva Corp has advised its shareholders that it is not likely to recover the P64 million spent thus far in developing the 1, 000-megawatt coal-fired plant and coal export project at Mmamantswe in the Kgatleng District.
The Australian resource development company first hit local shores in June 2007 via an agreement with citizen-owned Mawana Minerals. Under the deal, Aviva earned 90 percent equity in the project through the fulfilment of various conditions such as exploration expenditure.
Nearly three years to the day, Aviva has announced that while its expenditure in Mmamantswe has earned it the 90 percent stake, the 10.1 million Australian dollars spent on the project will be unrecoverable.
“During the year ended 30 June 2010, the carrying values of exploration assets were reviewed for impairment,” says the company in its recently released [continue reading]