Boliden temporarily suspends production at Myra Falls
TORONTO, Nov. 13 /CNW-PRN/ - Boliden Limited announced today that it is temporarily suspending production at its Myra Falls underground polymetallic
mine on Vancouver Island. The decision will enable Boliden to more quickly and effectively implement the action plan recently put together by a task force
addressing the challenging ground conditions in the Battle zone of the mine. The task force is composed of mine management, union representatives and technical
experts.
The suspension of production will commence in mid-December, with full production scheduled to resume by April 1, 1999. While ore will not be processed during
the suspension, the milling facilities will be operated at 50% capacity throughout the suspension period to process waste rock for backfill production.
Approximately 90 of the 450 employees at Myra Falls will be affected by the suspension. The remainder will be redeployed to implement the action plan, to carry
out stope and access route rehabilitation and development and to carry out maintenance work scheduled for early 1999. Boliden estimates that these activities will
cost US$9.8 million in the first quarter of 1999, of which US$6.6 million will be capitalized as development and rehabilitation work. Myra Falls production during
the first nine months of 1998 was 84,000 tonnes of zinc concentrate and 51,000 tonnes of copper concentrate.
Anders Bulow, President and CEO of Boliden, stated: ''We have chosen to take a much more aggressive and all-inclusive approach to dealing with the increasingly
challenging ground conditions that we have been experiencing at the Myra Falls mine. We are confident that this approach will result in a quicker turn-around for the
operation and will provide a safer working environment for our employees.''
With respect to its other operations, Boliden reported that its Spanish subsidiary, Boliden Apirsa SL, had received permission to recommence mining activities at its
Los Frailes mine and had delivered to the Spanish governmental authorities all required applications for permission to restart full operations at Los Frailes by
year-end.
Boliden also reported that October production at Lomas Bayas was 4,123 tonnes of copper cathode or 82% of rated capacity. Lomas Bayas began commercial
production on September 1, 1998 and is expected to reach its rated capacity of 5,000 tonnes of copper cathode per month by year-end.
SOURCE: Boliden Limited |
