OZ scuttles Scuddles

OZ Minerals announced yesterday it was suspending its Scuddles mine in Western Australia and placing it on care and maintenance in order to reduce costs at its Golden Grove operation by US$15 million.

OZ Minerals announced yesterday it was suspending its Scuddles mine in Western Australia and placing it on care and maintenance in order to reduce costs at its Golden Grove operation by US$15 million.

The suspension will see the loss of approximately 50 permanent employees and 20 contractors from the site.

“We are very conscious of the effects that this decision will have on employee and contractor numbers on the site, however given the current continued slump in commodity prices and the current financial challenges facing our business we have to make tough economic decision across the board,” OZ Minerals CEO Andrew Michelmore said.

Some of Scuddles’ resources will be redeployed to the Gossan Hill mine at Golden Grove.

Zinc production expected to fall by 25,000 tonnes to 55 — 60,000 tonnes and copper to increase by 5,000 to 40 — 45,000 tonnes.

Focus at Scuddles will be on improving operations at the site.

“What this decision means is that we will markedly improve the site’s cost performance,” Michelmore said.

“This will allow us to ensure long term sustainability of the operation.”

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