| Tue 8 Jun 2010, 16:00 | | MTX - Metorex Limited - Ruashi plant shutdown completed |
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MTX
MEMTX
MTX - Metorex Limited - Ruashi plant shutdown completed
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 completed
Metorex, a focussed base metals mining group, listed on the JSE Limited,
wishes to inform shareholders and update the market on the completion of a
planned shutdown to carry out essential maintenance at the Ruashi Mine in the
Democratic Republic Congo.
On 25 May 2010, it was announced that production at the Ruashi mine for the
June 2010 quarter would be affected through a transformer electrical fault.
The transformer fault occurred on 8 May 2010 and caused an internally
generated voltage spike which tripped both rectifiers in the copper tank
house. The transformer fault related to a latent defect arising from the
prior rectifier breakdowns experienced during January 2010. Production was
curtailed to 70 per cent of capacity and subsequently on 28 May 2010 a
decision was taken to replace the defective "A" transformer and the solvent
extraction electro-winning ("SX/EW") plant was shutdown on 29 May 2010.
The transformer was replaced over a period of six days and the rectifier
circuits were re-energised on 4 June 2010. During this planned shutdown, the
mine took the opportunity to complete a SAG mill re-line previously planned
for July 2010. Mining activities were entirely unaffected by the shutdown and
ore was stockpiled during this period. Full processing rates have resumed and
the SX/EW plant tenors and electro-winning rates will be at desired levels
within 6 days.
The impact on production at Ruashi as a result of operating the plant at 70
percent for the period between 8 May 2010 and 28 May 2010 and the six day
plant shutdown and subsequent return to a normal process rate is reflected in
the table below:
Units April May 2010 June 2010 June 2010
2010 actual estimate quarter
actual estimate
Copper Tons 3,100 2,357 1,800 7,257
Cobalt Tons 262 300 200 762
Measures to reduce the vulnerability of the rectifier and transformer circuits
to power supply spikes were identified and protection against the reoccurrence
of this risk have been implemented.
Additionally, a business interruption insurance claim has been submitted as a
result of the transformer fault.
Johannesburg
8 June 2010
For further enquiries please contact:
Metorex CEO, Terence Goodlace Tel: 011 880 3155
CFO, Maritz Smith
College Hill Jacques de Bie Tel: 011 447 3030
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 08/06/2010 16:00:01 Produced by the JSE SENS Department.
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