CuDeco Ltd. said Oct. 17 that it will extend the suspension at its Rocklands copper mine in Queensland, Australia, for another two months as it undertakes a comprehensive review and restructure of the asset.
The company suspended operations at the mine on Aug. 31 and has since completed key maintenance activities, but it decided on the extension to make way for the review, which will incorporate optimized plant processes and restructure existing contracts, among others.
During this period, CuDeco will finalize a long-term funding agreement to support the review and allow it to complete certain audited accounts.
Meanwhile, the company said its Cloncurry Infrastructure Pty. Ltd. subsidiary defaulted on a US$2 million loan as a result of short-term funding challenges. This prompted PT Kemala Shipping to appoint a receiver to the entity.
Cloncurry Infrastructure owns most of the group's real estate assets in Cloncurry township over which PT Kemala holds first ranking security.
"This extended suspension is the logical next step in being able to finally achieve a profitable, sustainable operation which is not impeded by operational shortcomings or funding deficits," CuDeco Chairman Peter Hutchison said.