CBH to Further Reduce Zinc Mining, Fire More Staff (Update1)
bloomberg.com
By Rebecca Keenan
Nov. 7 (Bloomberg) -- CBH Resources Ltd., an Australian base metals producer backed by Japan's Toho Zinc Co., will further reduce zinc and lead ore production at its Endeavor mine, cutting staffing levels by half to 115.
``This revised plan is being implemented immediately, and it is expected to generate a significant improvement in Endeavor's overall cost position,'' Sydney-based CBH said today in a statement to the Australian stock exchange.
Lead and zinc prices have declined 43 percent and 54 percent, respectively, on the London Metal Exchange this year as the worst credit crisis since the Great Depression cubs demand for metals. The prices are now below the operational cost of production at a ``significant'' portion of the world's zinc mines, including the Endeavor mine in New South Wales state, CBH said today.
Ore production will be cut by 30 percent to 658,000 metric tons in the year ending June 30, 2009, it said. Zinc concentrate production will be 78,200 tons and lead concentrate will be 38,700 tons. Production will be further reduced to 420,000 tons in the following year.
CBH, seeking to buy rival miner Perilya Ltd. in an all-stock deal, has plunged 72 percent in Sydney trading since the end of June to yesterday. That compares with the 20 percent decline in the benchmark index.
To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net
Last Updated: November 6, 2008 18:12 EST |
