Aditya Faces $225m Impairment And Looks To Sell Mt Gordon
A sinkfall incident at Aditya Birla Mineralsí Nifty underground copper mine may take as much as $225 million from its book value.
300km south-east of Port Hedland at the companies Nifty mine, the incident took place in March, blocking access to certain sections of its ore body causing the impairment.
The company recommenced mining during the quarter, producing 3885 tonnes of copper, well below the 14,355 tonnes sold during the 2013 September quarter.
Today copper was trading at $7620/t, the company didnít break down costs, however said site costs were 28.5 million during the quarter, based on the number of tonnes produced, operational costs where $7335 per tonne.
Aditya Birla Minerals management is currently in the process of finalising its review and discussing with auditors on impairment models for its assets.
In June, 109 or 26 percent of its workforce were laid off due to the sinkfall incident.
The news comes as Aditya Birla Minerals, owned by the Aditya Birla group, is in talks with a potential buyer to sell its Mt Gordon copper mine 120km north of Mount Isa.
The mine was placed into care and maintenance in April 2013, the company has said it has already begun negotiations with a ìthird partyî for it sale.
The company informed the ASX, ìAs part of the strategic review of the companyís Mt Gordon operations, the management is now in negotiations with a third party for the potential disinvestment of 100 per cent shares in Birla Mt Gordon."
ìThese negotiations may or may not conclude successfully, however the market will be informed appropriately if the board takes any decision to enter into a binding sale agreement,î it added.
