Troubled Cloncurry copper producer CuDeco won’t yet confirm when its Rocklands plant will re-open but is working on “a comprehensive plan for operational and financial restructuring”.
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The mine has been closed since August 31 and an ASX release on October 17 said a remedial program would take “a further two months” to implement to get the project back on track.
Due to its funding challenges, the Company’s wholly owned Cloncurry Infrastructure Pty Ltd has gone into receivership after defaulting on the repayment of a $2.8 million loan.
Indonesian company PT Kemala Shipping has appointed a receiver to Cloncurry Infrastructure Pty Ltd which owns most of CuDeco’s real estate assets in Cloncurry over which PT Kemala holds security.
CuDeco told the ASX its directors said long-term funding solutions as part of an operational and financial restructuring process will allow for this debt to be repaid in full, and for the Receiver to be removed.
CuDeco said it had completed a comprehensive preventative maintenance program to “provide more consistent and reliable production from the processing plant into the future”.
READ ALSO: CuDeco produces its first copper
The operational review will include optimised processes in the plant for higher throughput and recoveries, eliminating bottlenecks through the crushing circuit, complete the pit optimisation process and revised mining schedule, complete capital projects, establish a cost structure which meets industry best practice, restructure existing contractual arrangements, and finalise business improvement initiatives to underpin ongoing improvements in productivity and profitability.
CuDeco’s Chairman Peter Hutchison said the extended suspension was the logical next step in being able to finally achieve a profitable, sustainable operation unimpeded by operational shortcomings or funding deficits.
“The unfortunate loan default highlights the need for us to take stock, reset and move forward from a robust operational and financial platform,” he said.
“CuDeco’s Board and management remain focused on ensuring successful and profitable operations at Rocklands delivering economic benefits for the local community, security of employment for our valuable staff and creating value accretive initiatives for our shareholders over the long term.”
READ ALSO: CuDeco issues cause closure
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
