| Tue 25 May 2010, 17:47 | | MTX - Metorex Limited - Ruashi plant shutdown for essential maintenance |
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MTX
MEMTX
MTX - Metorex Limited - Ruashi plant shutdown for essential maintenance
METOREX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
Share code: MTX
ISIN: ZAE000022745
Issuer code: MEMTX
("Metorex")
Ruashi plant shutdown for essential maintenance
Metorex, a focussed base metals mining group, listed on the JSE Limited, wishes
to inform shareholders and update the market on a planned shutdown to carry out
essential maintenance at the Ruashi Mine in the DRC.
Following record production of copper in April 2010 (3,100 tons of copper
produced), production at the Ruashi mine for the June quarter has been affected
through a transformer electrical fault related to a latent defect arising from
prior rectifier breakdowns experienced during January 2010. On 8 May 2010 an
internally generated voltage spike tripped both rectifiers in the copper tank
house. Following an investigation and the re-setting of the circuits it was
established that the January 2010 voltage spike damaged the transformers in
addition to the rectifiers. The high production levels of March and April
exacerbated a latent defect in a transformer and culminated in internal arcing,
resulting in a voltage spike.
Transformer manufacturer experts from India are currently at Ruashi, and a back
up new transformer is on site. Currently the Ruashi tank house is operating on
reduced throughput (70 percent of rated capacity) with a commensurate reduction
in copper output.
The circuit is made up of two rectifier and transformer units, namely an "A" and
a "B" circuit. The "A" circuit was energised to 50 percent of capacity on 8 May
2010, and the "B" circuit was restored to normality on 9 May 2010 following the
arrival on site of specialists from the rectifier supplier.
It is most likely that the "A" transformer will need to be changed out. This
will require a plant shutdown of between five and seven days which will further
reduce copper output in May 2010. The shutdown will also be used to carry out
other major maintenance jobs which were planned for June and July 2010, such as
a mill reline. By maximising our maintenance efforts during one shutdown we
anticipate minimising the overall effect on quarterly production. Mining
activities will continue and ore will be stockpiled during the shutdown period.
An electrical power supply audit was initiated by Metorex and measures to reduce
the vulnerability of the rectifier and transformer circuits to power supply
spikes have been identified. Protection against this risk and stabilisation
measures have been planned for implementation in the short to medium term. The
market will be updated on progress in this regard.
Johannesburg
25 May 2010
For further enquiries please contact:
Metorex CEO, Terence Goodlace Tel: 011 880 3155
CFO, Maritz Smith
College Hill Jacques de Bie/Hayley Crane Tel: 011 447 3030
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 25/05/2010 17:47:01 Produced by the JSE SENS Department.
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