Suspension of Mining Activities at Lady Annie MineDOWNLOAD
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Contact: Ryan McKinlay ( media enquiries only)
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6 March 2009: The Receivers and Managers for CopperCo Limited (ASX:CUO) - Gary Doran and David Lombe, from professional services firm Deloitte Touche Tohmatsu - advise that mining and hauling activities at the Lady Annie copper mine in Queensland will be suspended indefinitely from today.
Copper processing will continue as normal at the mine, which is located 120km north of Mt Isa.
The decision to indefinitely suspend mining and hauling operations follows significant flooding at the mine site, and the preparation of up-to-date mine optimisation plan for the Lady Annie operation.
On 13 February 2009, as a consequence of the exceptional adverse weather conditions in North West Queensland, mining activity was suspended and 68 mining employees were stood down until further notice.
Based on the up-to-date mine optimisation plan and the associated risks and funding requirements, the Receivers and Managers have today suspended the site’s mining and hauling operations indefinitely.
The decision will unfortunately result in the loss of jobs for the 68 mining employees previously stood down in February together with an additional 28 employees. The employment of 72 employees involved in processing and mine administration remains unaffected.
Mr Doran said the move to suspend mining and hauling operations followed record rainfall and flooding across northern Queensland, which had significantly impacted mining activities on site.
“The Receivers and Managers have considered options for the ongoing operations of the mine, in consultation with mining consultants. However, in light of the flooding, and the up-to-date mine plans and assessments, the suspension of mining and hauling activity was considered the most appropriate course of action available to maximise the return to all stakeholders,” Mr Doran said.
“Copper processing activity at the mine will continue for the foreseeable future, with stockpiles of mined ore allowing ongoing production of copper concentrate at Lady Annie,” Mr Doran said.
He said the Lady Annie operation represented a high quality asset.
“The Receivers and Managers have advertised the Lady Annie asset for sale, and have received expressions of interest from a number of parties,” Mr Doran said.
All entitlements accrued by the affected employees for services provided during the period of the receivership will be paid by the Receivers and Managers within seven days.
Any employee entitlements outstanding, other than those for services provided during the receivership, will represent a priority claim against the floating charge assets of the company and will be paid if and when sufficient realisations of floating charge assets have been made.
For further information:
Corporate Reorganisation Group
Tel: +61 (0) 8 9365 7120