Kenmare has no knowledge of BHP bid moves

KENMARE Resources has denied reports that its joint venture partner, BHP, was going to make a bid for the company. Company secretary Mr Tony McCluskey said "no approach has been made to us by BHP, nor are we aware of any intention by them to make an approach".

He had spoken to the Irish Stock Exchange, and had given it a similar response, adding that as far as Ken mare was aware, no bid was being prepared, had been prepared, or had been entered into on behalf of BHP for Kenmare.

Kenmare and BHP signed a joint venture agreement covering the exploration and possible development of the Congolone Mineral Sands project in northern Mozambique least year. It entitles BHP to earn a 75 per cent interest in the project by spending $24 million (£15 million). This participation, however, is contingent on the continued success of the exploration programme.

After BHP has spent the $24 million, Kenmare would have the opportunity to fund its percentage shareholding of the development costs, or dilute to a smaller participating interest.

Noting the joint venture, Mr McCluskey said: "That is the extent of our involvement with BHR, BHP's participation was contingent on the continued success of the exploration programme. "To build that project you are probably talking in the order of $300 million plus, and since the announcement we have made very good progress with BHP," said Mr McCluskey.