BHP Closes Cannington Silver, Lead Mine After Death 2006-12-15 03:56 (New York)
By Tan Hwee Ann
Dec. 15 (Bloomberg) -- BHP Billiton Ltd. closed its
Cannington mine, the largest source of lead and silver, after a
death at the unit in northern Australia.
The mine in Queensland state will be closed indefinitely
during an investigation, Emma Meade, a spokeswoman for the
Melbourne-based company, said today.
``Mine management have notified relevant authorities about
the incident and an investigation is currently being
organized,'' the company said in an e-mailed statement.
BHP said in April it was undertaking safety improvements at
Cannington, reducing the amount of ore milled by 20 percent
during the 2006 and 2007 fiscal years. Lower lead output has
helped boost prices this year. The metal, used in car batteries,
traded at a record $1,785 a metric ton on Dec. 12.
Cannington has long-term smelter supply contracts in
Australia, South Korea, Europe and Japan, according to BHP's Web
site.
Lead for delivery in three months on the London Metal
Exchange gained $3, or 0.2 percent, to $1,668 a ton as of 8:54
a.m. local time. Silver for immediate delivery was up 2 cents,
or 0.2 percent, to $13.795 an ounce.
The mine produced 266,321 tons of lead for the year ended
June 30. It also produced 38.4 million ounces of silver
concentrate and 68,779 tons of zinc for that period.
Silver prices have jumped 56 percent this year, as
investors bought precious metals to hedge against inflation and
a weakening dollar.
BHP also said in April it was increasing rebuilding at the
mine and refilling worked sections in the southern zone. Work at
the northern zone wasn't affected, it said at the time.
The miner may consider selling the mine as it's approaching
the end of its life, Goldman Sachs JBWere Pty. said April 27.
Shares of BHP in London rose 9 pence, or 1 percent, to 959
pence.
--With reporting by Chanyaporn Chanjaroen in London. Editor:
Gosman (sjc). |
