Metorex Limited Announce The Placing Of The Chibul
Care And Maintenance Basis
METOREX LIMITED
ISIN CODE : ZAE000022745
SHARE CODE : MTX
In view of the current international copper price, combined with the high
costs of acid, scrap and concentrate terms for the oxide ore and cement
copper, the Board of Metorex Limited are of the opinion that continued
operations at the Chibuluma South Project will result in losses for the
group. Metal price forecasts, as a result of recent world economic
conditions, suggest a more extended slowdown than originally envisaged. In
accordance with the Zambian Mines and Minerals Act and other contractual
obligations, it has been decided to place the Chibuluma South Project on a
`care and maintenance' basis pending an improved copper price.
Studies into obtaining earlier access to the high grade sulphide ore zone
via the open pit are in progress and shareholders will be kept informed of
the results thereof. The Chibuluma West mining operations are unaffected by
this action at Chibuluma South and will continue as previously.
The remaining operations of the Metorex Group are performing well given
current prices. As noted in previous releases the diversity of the Metorex
commodity mix and proportion of Dollar based revenue provides a Rand hedge
to the Group.
BY ORDER OF THE BOARD
METOREX LIMITED
28th September 2001
For verification purposes please contact Charles Needham or Simon Malone
880-3155
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