Thursday 6 February 2014

Rio Tinto Rössing Uranium expects huge financial loss

Rio Tinto Rössing Uranium admitted recently it is bracing for a financial impact on its 2014 financial year, caused by a huge production loss after a leach tank failed in the mine’s production plant on 3 December last year, causing a total shutdown of all processes.

In a statement, the mine’s managing director Werner Duvenhage said the mine’s management is currently reviewing its strategy for year 2014 to respond to the setback as best as possible.

“The leach tank failure will have an impact on the company’s production targets and its financial results in 2014. The company’s management team is currently reviewing the 2014 plans,” Duvenhage stated.

The full cost of the shutdown and the damage is still in the process of being assessed, according to Duvenhage, but, in a proactive move, Rössing used the downtime for maintenance work and also carried out improvements and restoration work to prevent such incidents from recurring. The mine has twelve leach tanks. Duvenhage again reite-rated the spill caused by the leach tank failure was contained safely, and with no environmental damage or injury or death to any employees.  Late in 2013, the mine did indicate though, that a number of workers were treated for light injuries during the cause of containing the spill.

Since last Friday the mine systematically started to reactivate all its production operations on a reduced scale, and once given the green light it would return to full production.

No comments:

Post a Comment