flood closes mine at lady annie

Flooding stops CopperCo mine production
13th February 2009, 16:49 WST

Mining at CopperCo Ltd's Lady Annie copper operation in Queensland's Mt Isa region has been suspended due to flooding.

The receivers and managers for CopperCo, which went into administration in November after a finance deal fell through, said in a statement on Friday that 68 of the mine's employees had been stood down until further notice.

Deloitte Touche Tohmatsu said "this is not a termination of employment" for the mine's workers and entitlements would continue to accrue as normal.

The receivers and managers have also made arrangements to obtain funds from CopperCo's financier regarding certain employee payments.

Deloitte Touche Tohmatsu said flooding and subsequent damage had prevented normal access to mine site and severely impeded mining operations.

"The necessary repairs to restore operations to normal levels cannot properly commence until the weather and conditions improve," Deloitte Touche Tohmatsu's Gary Doran said.

Last Friday, iron ore explorer Cape Lambert Iron Ore Ltd acquired the secured debt owed by CopperCo from Macquarie Bank Ltd and investment house LinQ Resources Fund.