Johannesburg, South Africa — MININGREVIEW.COM — 20 November 2008 – Central African Mining & Exploration Company Plc (CAMEC) – an AIM listed diversified producer with multiple business lines across Central and Southern Africa – has temporarily halted copper and cobalt mining operations in the Democratic Republic of the Congo (DRC).
A DRC update released here and in London described the decision as “a swift reaction to a sudden steep decline in cobalt demand from China, as well as a further decline in the copper price.”It said these prudent measures would result in a material reduction in costs.
The update went on to explain that the company was monitoring the situation on a weekly basis, and would re-commence mining operations immediately cobalt demand warranted it. The design of the Mukondo/Kakanda / Luita facility allowed for rapid mobilisation; meanwhile a production holiday was being effected with re-commencement anticipated in early 2009, and during this period sales would be fulfilled from stock.
“As announced earlier this month,” the update continued, “in light of the world economic turmoil and the recent fall in commodity prices, CAMEC was reducing ongoing exploration expenditure across the group, but remained committed to providing JORC-compliant resource figures for a number of exploration assets in the coming months.”
Turning to trucking and logistics, the company confirmed that Sabot continued to perform strongly, and said the anticipated reduction in mining transport demand in the DRC was being replaced by increased demand from other industries across Central and Southern Africa, particularly for food transport. “By the year end Sabot would have a fleet of 500 trucks with 300 less than three-years old” the update added.“It was now one of the largest trucking and logistics companies in Central and Southern Africa.”
The company expects to announce interim results for the six months ended 30 September 2008 in mid December.