Not all mining is high-risk, says Aricom CEO

May 21, 2007

jayhambro.jpgThere’s no reason why private equity shouldn’t play a bigger role in mining, which in any case isn’t all high-risk, the CEO of Russia-focused miner Aricom told Reuters journalists in London. “There has been a lot of private mining companies for some while,” Jay Hambro said. “The risks that private equity holders may take, or their risk appetite, would be larger than the public equity market.”

Jay Hambro, who is the son of gold miner Peter Hambro, said that in any case the exploratory work Aricom does at iron ore deposits in the Russian far east is far less risky than what some other miners do. “What we’re doing is large-scale dirt-moving and then passing a magnet over the top of it. It’s not very complicated. If you are mining 5 kilometres down in a narrow-vein gold deposit in South Africa with a workforce which is a third HIV-positive, your risks are very different.”

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