HANOI, Vietnam, May 19, 2011 (GLOBE NEWSWIRE) -- Cavico Corp. (Nasdaq:CAVO) ("Cavico" or the "Company"), a major infrastructure construction, infrastructure investment, and natural resources conglomerate based in Vietnam, today announced that Prime Minster Nguyen Tan Dung has approved its proposal for a project to construct a vertical coal mine shaft in Vietnam.
Cavico submitted the initial project proposal to the prime minister's office in March 2011. The Vietnam National Coal and Mineral Industries Group ("Vinacomin"), a top state-owned mining company, has been appointed by the prime minister's office to select a site in Vietnam upon which Cavico will build the midsize vertical mine shaft. Vinacomin and Cavico will jointly develop and present a construction proposal for the shaft to Vietnam's Ministry of Industry and Trade during the third quarter of 2011. Cavico will be the first domestic construction contractor to construct a vertical coal mine shaft in Vietnam and is not required to go through any bidding process for the project.
The project is in line with the Vietnamese government's long-term strategy to shift from open-pit coal mining to vertical shafts. Vertical mine shafts enable miners to extract coal at greater depths from complex geological terrain and are considered more environmentally friendly than open-pit mines. In Quang Ninh Province, Vietnam's primary coal mining region, studies conducted by both domestic and international mining experts have identified hundreds of potential sites for vertical coal mine shafts. A vertical mine shaft in the region, 1,000 feet deep and 21 feet wide, currently under construction by a foreign contractor, required a total investment of $40 million and is expected to produce more than one million tons of coal annually.
"We are delighted that Prime Minister Dung has approved Cavico's proposal to initiate this project," commented Mr. Hung Manh Tran, executive vice president of Cavico. "His decision confirms our clients' and government officials' confidence in our experience, the quality of our work, and the skill of our workers. We look forward to working with Vinacomin, with whom we have a longstanding working relationship, on this project."
Mr. Tran continued, "Currently, there are no domestic contractors qualified to construct vertical coal mine shafts. Cavico has built numerous vertical shafts for hydropower plants, which share many similarities with vertical mine shaft construction. We believe this unique expertise, coupled with our participation in this program, will provide us with an early lead as Vietnam's coal industry shifts from surface to underground mining. This first-mover advantage, as the domestic pioneer in this new trend, positions us well to win additional future contracts."
About Cavico Corp.
Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants, mineral exploration and urban developments in Vietnam. The company employs more than 3,000 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia. The Company now has three subsidiaries, Cavico Mining (HSX:MCV), Cavico Industry & Mineral (HNX:CMI), and Cavico Construction Manpower & Services ( HNX: CMS ), which are listed in Vietnam on the Ho Chi Minh and Hanoi Stock Exchanges.
Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community developments. One of the Company's primary competitive advantages is its ability to nurture a project "from concept through completion" with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico's project partners include top multi-national corporations and government organizations. The Company employs more than 3,000 full-time, part-time, and seasonal workers. For more information, visit . Information on the Company's Web site or any other Web site does not constitute a portion of this release.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, the Company's ability to complete projects in the time frame specified; anticipated revenue from the projects to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Cavico Corp. Timothy Pham Vice President and Director +1-714-843-5456 cavicohq@cavico.us Investor Relations Contact: Dave Gentry RedChip Companies, Inc. 800-733-2447, Ext. 104 407-644-4256, Ext. 104 info@redchip.com