Maravi

British firm suspends mining project

British firm suspends mining project
Written by Nchima Nchito
Monday, February 16, 2009 5:09:29 AM

BRITISH mineral exploration company Triple Plate Junction (TPJ) Plc has temporarily suspended its copper operations in Zambia.

According to the mining weekly, TPJ cited the company’s failure to bring copper production to the anticipated levels due to severe weather conditions as the reason for suspension of operations.

“The board is reviewing the feasibility of operating in Zambia on a positive cash flow basis, as well as actively evaluating a number of strategic options to secure the necessary working capital for the company, including further funding and the possible disposal of some assets,” TPJ stated.

The company further stated that its hope had been to maintain a positive cash flow from its Zambian operations which would have been used to fund exploration activities in Papua New Guinea and Vietnam, but this was no longer possible.

TPJ’s announcement of suspension of operations comes soon after the company released its interim results for the period ending September 30, 2008 in which it acknowledged facing several difficulties in its Zambian operations.

“Although the Company has faced several difficulties bringing its Zambia facility into production, operations have now progressed with the commencement of small ore sales in November. These sales should increase rapidly as the newly-acquired and installed concentrating machinery comes into production,” stated company chairman Ian Gowrie-Smith in the interim report. “Copper production has commenced in Zambia, giving TPJ the prospect of establishing its own cash flow to support the rest of the Group.

“Meanwhile, progress with exploration in Papua New Guinea and Vietnam gives us great encouragement for the future.”

Listed on the London Stock Exchange's Alternative Investment Market (AIM), TPJ has traditionally focused on Southeast Asia-principally Vietnam and Papua New Guinea-but had established TPJ Africa Limited as way of entering the continent with Zambia being the first stop.

Labels: JOBLOSSES, MINING, TRIPLE PLATE JUNCTION

posted by MrK @ 5:09 AM