Production and Markets BHP reports mechanical failure at Olympic Dam
Publishing Date 07 Oct 2009 11:43am GMT Author Mining Journal
BHP Billiton has reported damage to the haulage system in the Clark shaft at its Olympic Dam uranium and copper mine.
The company said a mechanical failure on Tuesday evening caused the damage, and that a full investigation is underway to determine the reason for the failure and extent of the damage.
In a note on Wednesday morning, Fairfax said the outage could influence commodity markets. "Should the outage be prolonged, it could affect uranium prices. The mine produced 4,007t of uranium oxide in the year to June," said the note.
The main shaft haulage system supplies ore from underground to the surface processing facilities. The secondary haulage system continues to operate, according to a company statement.
BHPB says no one was injured in the incident as the haulage system is fully automated. Located 560km north of Adelaide in South Australia, Olympic Dam is a multi-mineral orebody. It is the world's fourth largest remaining copper deposit, fifth largest gold deposit and the largest uranium deposit. It is Australia’s largest underground mine.
No timeline has been given for a re-start of the haulage system.
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