copperco back to full production

CopperCo back to full production
11/12/2008 7:49:00 AM
PRODUCTION operations at CopperCo have been ramped back up to full capacity.
Receivers Ferrier Hodgson said an assessment of the site had lead to a decision to continue mining.

“To do that we had to get the full support of contractors back to site,” receiver Darren Weaver said.

“That happened late last week and now operations are continuing as usual.”

Mr Weaver said mining on site had never completely ceased nor had staff been laid off.

“We’re at full operation. We are not conducting exploration at the moment; we are just working on the sites available to us.

“The exploration teams are focusing their efforts on the preparation of dataroom materials and information memoranda that can be used in the sale/restructure process that will be controlled by the receivers and managers.”

Mr Weaver said according to the receivers’ documents, all employee entitlements were up to date.

He said receivers would continue to monitor the performance of the Lady Annie operations and the copper price while planning for the months ahead.

“Our initial focus has been on the preservation of the operations of the site and that is starting to come together now, and focus will shift to the solution,” Mr Weaver said.

In the past week Ivanhoe Australia, who have operations near Cloncurry, flagged it may seek the assets of CopperCo.

Chief executive Peter Reeve said that Ivanhoe’s Australian arm was cashed up, with $70 million in the bank for exploration and possible acquisitions.

The collapse of CopperCo has been blamed on its failure to refinance $45 million owed to Macquarie Bank.

The debt was inherited in the merger with Mineral Securities three months ago.