COPPER miner CuDeco said its plans for the final stages of the development of its Rocklands mine, near Cloncurry, were on track after the installation of its new management team and with investors support.
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Chairman Wayne McCrae last week resigned his role after Chinese-based investors, China Oceanwide International Investment Co., Sinosteel Equipment & Engineering and New Apex Asia Investment Ltd., expressed concerned about the miner’s debt and a recent share issue.
Last Friday, David Taylor was named as Mr McCrae’s replacement, and Peter Hutchison was appointed managing director and Jiang Yongmin a non-executive director, as stakeholder Sinosteel’s nominee.
Cudeco recently implemented cost cutting at Rocklands while the plant was completed.
Last Friday, it said was firing 18 workers and $500,000 would be shaved from weekly expenses, through savings on staff, fuel, drilling and blasting.
It also said the mine had 2.2 megatonnes of ore stored for processing “sufficient to meet our existing requirements”.
Cudeco said the miner will boost its existing debt facility with the Minsheng Bank to $US100 million ($138 million), which Oceanwide, Sinosteel and and New Apex Asia Investment Ltd., which recent filings show hold about a third of Cudeo’s stock, will guarantee.
The three investors also will loan CuDeco collectively $3 million.
CuDeco was confident of getting the necessary funding to bring Rocklands into production, based on the support of its major investors and Minsheng Bank, Mr Hutchison said.
