CVIC | Cavico Corp Subsidiary Expands Thung San Mine

Penny Stocks News

Jul 28, 2008 9:00:00 AM

Copyright Business Wire 2008

HANOI, Vietnam--(BUSINESS WIRE)--

Cavico Corporation (OTC BB: CVIC) ("Cavico" or "the Company"), a leading infrastructure development company in Vietnam, today announced that Cavico Mineral Exploitation is expanding construction and exploring for additional deposits at the Thung San mine. Cavico Mineral Exploitation is an entity formed by the two wholly owned Cavico subsidiaries, Cavico Tunnel and Cavico Hydropower.

The Thung San mine, situated on 20 hectares of land in Quy Hop district, Nghe An province, has 20 million tons of limestone reserves that are expected to last for 25 years according to the current exploiting schedule. Currently Cavico is constructing access roads and storage sites around the mine. At the present Cavico Mineral Exploitation is selling an average of approximately 12,000 tons of limestone per month.

Generally limestone is manufactured into a fine powder of calcium carbonate which is used in manufacturing of plastics, rubber, paint, cement, mortar, paper and agricultural feeds and fertilizers. Limestone is a rare natural resource in Vietnam. In 2005 and 2006, Nghe An province has exported 125,668 tons, or $17.5 million worth, of limestone. The limestone can be exported to Japan, the European Union, China, and India.

Commenting on the status of the road construction, Mr. Hai Thanh Tran, Vice President of Cavico stated, "We plan to complete construction of the access roads soon so that the equipment can be easily transported to the site increasing production and productivity." Mr. Tran added, "Cavico Mineral Exploitation remains committed to providing high-quality products to fulfill domestic sales and anticipates expanding sales to Japan, Taiwan, Korea, and Middle East region."