SAL - Sallies - Sallies to close its Buffalo Operation
SAL
SAL
SAL - Sallies - Sallies to close its Buffalo Operation
Sallies Limited
(Incorporated in the Republic of South Africa)
(Registration number 1903/001879/06)
Share code: SAL & ISIN: ZAE000022588
("Sallies")
SALLIES TO CLOSE ITS BUFFALO OPERATION
The Board of Sallies Limited informed staff, employees and the National Union of
Mineworkers on Friday, 10 October 2008, of its intention to mothball the plant
and cease operations at the Buffalo plant due to its inability to secure
economical prices for its fluorspar. Consultation with about 130 employees will
soon begin and this will focus on options to limit the adverse effects that
plant closure would have on the workforce.
Buffalo produces acid grade fluorspar from tailings which were discarded from
mining operations between 1974 and 1994 and contain high levels of phosphorous,
in contrast to the Witkop mine. This limits the number of international plants
which can successfully treat fluorspar from Buffalo, and the price they can
afford to pay.
Tom Dale, CEO of Sallies, commented: "This has been a very difficult decision.
We have looked at expanding volumes to reduce unit costs and various technical
approaches to reducing phosphorous. None of these are viable. The limited power
supply to Buffalo further reduced our options."
Dale said that the company would complete a SAMREC compliant assessment of the
ore remaining at Buffalo and direct its management resources towards enterprises
which could add value.
Johannesburg
13 October 2008
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 13/10/2008 09:21:01 Produced by the JSE SENS Department.
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