Royal Dutch Shell Plc  .com Rotating Header Image

Financial Times: PETER HAMBRO IN DAMAGE LIMITATION MOVE AFTER REPORTS ABOUT ITS RUSSIAN LICENCES

EXTRACT: Shell’s problems with its Sakhalin-2 gas project and the fatal poisoning of former spy Alexander Litvenenko in London had added to fund managers’ wariness, the person said, adding: “The market has come to hate Russia.”

By Rebecca Bream
Published: December 13 2006 02:00 | Last updated: December 13 2006 02:00

Peter Hambro, the gold mining entrepreneur, is planning to fly to Moscow today in an attempt to limit the damage being done to his company’s stock price by reports that its Russian mining licences might be revoked, writes Rebecca Bream.

Shares in Aim-listed Peter Hambro Mining, which mines gold in the far east of Russia, fell by 154p or 16 per cent to 822p yesterday, their lowest level for more thana year.

The stock started falling on November 30 when Oleg Mitvol, deputy head of Rosprirodnadzor, the Russian natural resources ministry’s environmental watchdog, said environmental violations had been found at five of the company’s projects and the licences should be revoked.

PHM has denied any wrongdoing, and says that it has not received any complaint from the Russian ministry of natural resources.

Mr Mitvol, an outspoken critic of resources companies’ activities in Russia including Royal Dutch Shell, said yesterday that his organisation would inspect all of the company’s operations during the next few months.

PHM said it was normalfor mining companies to be regularly inspected.

Mr Hambro, founder and executive chairman of PHM, said he would fly to Moscow today and hold talks with Mr Mitvol tomorrow.

“I am going to Russia witha view to seeking clarity [from Mr Mitvol]. I have still not received any notification whatsoever from this guy,” Mr Hambro said.

The company said it did not think there was a wider Russian government campaign against PHM.

A person familiar with the situation said PHM’s shares had been hit by a combination of Mr Mitvol’s comments and a general deterioration in investor confidence in Russia.

Shell’s problems with its Sakhalin-2 gas project and the fatal poisoning of former spy Alexander Litvenenko in London had added to fund managers’ wariness, the person said, adding: “The market has come to hate Russia.”

Copyright The Financial Times Limited 2006

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

0 Comments on “Financial Times: PETER HAMBRO IN DAMAGE LIMITATION MOVE AFTER REPORTS ABOUT ITS RUSSIAN LICENCES”

Leave a Comment

%d bloggers like this: