PanAust Halts Metals Contracts after Laos Mill Breakdown

22 June 2009 (Last Updated June 22nd, 2009 18:30)

A mill failure at PanAust’s Phu Kham copper and gold operation in Laos has disrupted production and forced the company to declare a force majeure, releasing parties involved in any copper and gold sale agreements from contractual obligations. PanAust said the plant would be closed for

A mill failure at PanAust’s Phu Kham copper and gold operation in Laos has disrupted production and forced the company to declare a force majeure, releasing parties involved in any copper and gold sale agreements from contractual obligations.

PanAust said the plant would be closed for between 11 and 23 days following the 19 June breakdown of one of the two 6.5MW motors that drive the mill.

PanAust said the untimely crash would disrupt near-term production and that it will advance its first annual major plant shutdown, planned for July, to mitigate production loss.

The force majeure is expected to be effective for about 30 days and will be lifted once the mill resumes production.