Australian miner CBH declares force majeure
Monday October 24, 2005, 12:17 pm
SYDNEY, Oct 24 (Reuters) - Australian miner CBH Resources Ltd. (ASX: CBH.ax) said on Monday it had suspended operations at its Endeavor mine and declared force majeure on concentrate delivery commitments it was unable to meet from stockpiles, sending its shares down sharply.
CBH, which mines zinc, lead and silver in New South Wales state, said it was forced to suspend mining after an "uncontrolled fall of waste ground".
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Normal production would start when access was re-established, it said.
"We'll have a better idea how much stock we have on hand in a few days," Managing Director Bob Besley told Reuters.
"It's hard to say, but there would be a least several thousand tonnes."
The news drove CBH stock down more than 26 percent against only a modest decline in the wider market .AXJO. CBH last traded 19 percent lower at A$0.21.
In April, world No. 1 silver miner Coeur d' Alene Mines Corp. CDE.N agreed to pay CBH A$50 million ($37.5 million) for all the silver mined at the Endeavor mine.
The Endeavour lode yields about 950,000 ounces of silver a year, but was developed mainly for its rich deposits of zinc and lead, which are sold to 25 percent shareholder Toho Zinc 5707.T and fellow Australian Zinifex Ltd (ASX: ZFX.ax) .
Last year it yielded 76,000 tonnes of zinc and 28,000 tonnes of lead, worth about $120 million in total. ($1=A$1.33) |
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