Asian Minerals Resources is continuing progress work on its Ban Phuc Nickel Project in Vietnam while waiting for final approvals from the Vietnamese government for its mining licence.

The Asian Mineral Resources 90%-owned joint venture has been working on avenues of reducing the start-up to production while it has been waiting for its mining licence.

In the 12 months since Ausenco completed the project's feasibility study a number of works have been undertaken at the property including various geotechnical and soil sampling test drilling, initial architectural and structural designs, preparation site surveys, formulation of tendering documentation and advancing negotiations with off-take smelter groups and financiers.

The wait for a mining licence and the newly introduced environmental law have pushed back Asian Mineral Resources Ban Phuc nickel mine approval towards the end of the first quarter in 2007.

The issuance of a mining licensce approving the development of the initial project is, is a multi-step process in Vietnam that may also now include the requirement of a positive opinion from the Prime Minister's office based on an overall strategic plan for nickel mining in Vietnam which is currently being prepared.

On July 1, the Vietnamese government introduced an environmental law with the guidelines enacted in October. Ban Phuc Nickel Mines (BPNM) has now submitted its environmental impact assessment and management plan to the relevant authorities for their approval.

Asian Mineral Resources president and CEO David Woodhouse says, "The mining licence is critical to progress the project and the potential for a timing mismatch in this approval process is always tricky to predict, but we continue to expect that the issue of the licence can be achieved in a satisfactory timeframe."

BPNM applied in July 2005 for an extension to its exploration rights over the 150sqkm area defined in its Foreign Investment Licence issued by the Ministry of Planning and Investment (MPI). Jurisdictional uncertainties between MPI and the Ministry of Natural Resources and Environment in relation to this exploration extension are being discussed with these authorities.

The development of the project will also require the issue of other permits and approvals from various levels of government within Vietnam. The company has determined that the majority of the material start-up construction approvals cannot be applied for until the mining licence has been granted.

Other permits and approvals associated with ongoing operations will be progressively acquired during the construction and development phase.