Tuesday November 29, 5:41 PM
Lafayette's Philippine Mine Ops Suspension Costs $5.5M
MANILA (Dow Jones)--The local unit of Australia's Lafayette Mining Ltd. (LAF.AU) said Tuesday the month-long suspension of its gold mining operation in central Philippines due to cyanide spills has cost it around $5.5 million.
Ronald Imperial, finance manager for Lafayette Philippines Inc., told reporters that the company has only shipped $2 million worth of gold and other metals, just a third of the projected $6 million for the year, before the suspension of mining operations in Rapu Rapu island south of Manila On Oct. 31.
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Aside from the foregone revenue, Imperial said Lafayette has also incurred an operating loss of $50,000 a day, or a total $1.5 million, since operations at the mine were suspended.
Lafayatte voluntarily suspended operations after two cyanide spills in October killed a number of fish.
Roger Corpuz, general manager for operations, said the Mines and Geosciences Bureau has imposed six conditions that Lafayette must comply with before it can resume operations.
The conditions include assurances from Lafayette that its mine tailings dam is structurally sound, rehabilitation of affected areas and the compensation of affected communities if there are any.
Corpuz said the company hopes to comply with all six conditions by the middle of December.
Lafayette's Rapu Rapu Polymetallic project started commercial production in July, averaging 2,500 ounces of gold a month.
Lafayette has formed a joint venture with South Korea's LG Collins and Korean Resources for the Rapu Rapu project.
LAF
lafayette mining limited
