Rosh Pinah, 14 March 2019: Employees of Skorpion Zinc’s mining contractor, Basil Read, went on an unprotected strike from 22 February until 06 March (with work resuming on 8th March). This impacted the required waste-stripping at the mine, and hence the ore mining schedule.
During the strike period, the Skorpion Refinery continued to run which led to ore stocks being depleted. It has therefore been decided to shut the Refinery for a period of five weeks to allow the mine to rebuild adequate stock levels.
The Refinery will undertake maintenance during this period i.e. work that was planned for later in the year. The teams are working to optimise the FY19/20 business plan so as to minimise the impact over the remainder of the life of the Pit112 project.
The $22mn EBITDA impact refers to this FY19 (March end) impact.
Every effort is being made to ensure that South African customers will not be affected by the temporary suspension, as they will be supplied from current inventory as far as this is possible. Some export volumes will be deferred and will be prioritised as soon as the refinery restarts in mid to late April.
For queries please contact:
Ms Nora Ndopu
Tel: +264 61 241 740
Mobile: +264 81 122 2147