Downpour continues

Queensland mine suspended after record rainfall.

The Receivers and Managers for CopperCo Limited, Gary Doran and David Lombe, from Deloitte Touche Tohmatsu, have announced the suspension of mining activity at CopperCo’s Lady Annie mine site in Queensland, following record rainfall and significant flooding.

The adverse weather conditions currently being experienced in North West Queensland have had a significant impact on production at the mine, located 120 km north of Mt Isa.

Flooding and subsequent damage has prevented normal access to site, and severely impeded mining operations, according to the company.

As a result, all mining activity at the mine has been suspended and 68 employees have been stood down from today, until further notice.

Since 1 December 2008, more than 1060 mm of rain has fallen on the site including 183 mm in 24 hours on 8 February 2009.

“The necessary repairs to restore operations to normal levels cannot properly commence until the weather and conditions improve and as a result, we have been forced to suspend operations,” Doran said.

For employees at the Lady Annie operation, this is not a termination of employment, and employee entitlements will continue to accrue as normal.

The Receivers and Managers have also made arrangements to obtain funds from the Company’s financier to make payment to employees that are being stood down for their annual leave entitlements, which were outstanding at the commencement of the Receivership (up to a maximum of two weeks leave).

The recent flooding levels have exceeded the design capacity of the site stormwater ponds, which were designed to retain a one in one hundred year “two month wet season runoff” event before overflow.

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