Sumatra Copper & Gold PLC suspended operations at its Tembang gold-silver mine in Indonesia and placed the mine on care and maintenance, according to an Aug. 13 release.
In May, the company temporarily suspended open pit activities at Tembang until it was connected to the state-owned power grid, which in turn will lower its electricity bill.
Sumatra Copper relied solely on output from the Belinau underground mine during this period, but lower production grades and excessive waste mining in the lower portion of the area led to negative cash flow.
The company said the suspension will stay while it prepares a new and sustainable mine plan. It also began talks with lenders and creditors to restructure its financial position. These initiatives are expected to take at least two months.