BELARUS NEWS AND ANALYSIS

DATE:

31/01/2008

Belarus to give Itera concession on Dobrushskoye chalk deposit

MINSK. Jan 31 (Interfax) - Belarus will give Itera Oil & Gas Company (RTS: ITER) a concession on the Dobrushskoye chalk deposit, Natural Resources and Environmental Protection Minister Leonty Khoruzhik said Wednesday.

"The contracts to give the development rights to the Dobrushskoye chalk deposit to Itera and the Khotislavskoye chalk deposit to Traipl are ready," he said.

He also said work is being finalized on the preparation of business plans for the participation of Russian firms Inter-Tekhno and Lotos in the development of deposits of sand and gravel materials and silicate sands. Each of these projects will cost an estimated $3 million.

Khoruzhik also said the country has begun implementing projects to develop brown coal and shale deposits, with a total cost of $4 billion.

"Considering the growing interest of foreign investors in our natural resources, we should conduct an appraisal of our deposits and prepare a regulatory foundation for the transfer of deposits for development on the basis of investment agreement," the minister said.

He said Australian firm Mineralogy is interested in developing iron ore deposits in Belarus.

"We are now looking for investors to develop the Okolovskoye and Novoselkovskoye iron ore deposits. Australian company Mineralogy has expressed an interest in participating in this project," Khoruzhik said.

Exploration of the Novoselkovskoye deposit in the Grodno region was continued last year, and it was established that the ore was close to commercial condition, he said.

Detailed exploration of Okolovskoye confirmed its potential, he said. A technology has been developed to enrich the ore, producing a quality magnetite concentrate that can be used at the Byelorussian Steel Works.

Source:

http://www.interfax.com/3/359917/news.aspx