Base-metals mining company Trevali Mining has halted operations at its Caribou zinc mine in Canada, as well as the expansion of its Rosh Pinah mine in Namibia, as it filed for protection from its creditors.
Trevali received an initial protection order from the British Columbia Supreme Court under the Companies’ Creditors Arrangement Act (CCAA).
This follows the filing of an application by the firm and all of its stakeholders for creditor protection under the CCAA following careful consideration of the company’s scheduled debt payments, cash position, forecast revenue and expenses, all of which are alternatives to a creditor protection application.
Last week, the mining firm defaulted on a debt payment of $7.5m due to several setbacks, including low productivity rates, equipment availability at Caribou mine, and a flooding event that impacted its Perkoa mine in Burkina Faso, according to miningweekly.com.
Following the operations’ review, the company decided to indefinitely suspend operations at its Caribou mine in New Brunswick due to financial and operational challenges.
Trevali president and CEO Ricus Grimbeek said: “The decision to suspend operations is a difficult but necessary step to address challenges at the Caribou mine.
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“This was not an action taken lightly and we are aware of the uncertainty created and impact this decision has on the community and on our team. The Trevali team have worked hard to improve the mine’s position and Trevali appreciates their dedication.”
The firm said it will place the Caribou mine on a care-and-maintenance programme immediately to preserve the value of the mine assets and mineral resources while protecting the environment in the vicinity.
However, the company will continue environmental compliance and general maintenance work at the mine site.
Located 50km west of Bathurst, New Brunswick, the Caribou zinc-copper-lead-silver-gold mine comprises an underground mine, 3,000tpd mill, a sulphide flotation recovery plant, and a tailings management facility, among others.