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Magellan set to restart Wiluna lead mine

CONTROVERSIAL lead miner Magellan Metals will overhaul its mine management within a bid to save revenue and restart shipping the base metal from the second quarter of 2013.The company's Canadian-based parent organization, Ivernia, informed shareholders overnight its plans to once again ship lead carbonate through Fremantle Port were well advanced but warned it Ball Mill Manufacturers


Ivernia explained the company would shell out up to $6 million on capital tasks from the next 9 months to obtain the mine working - which includes employing and training personnel.

The organisation's largest shareholder Enirgi Group has also recommend day-to-day management be left to Enigri Metals Group, it explained. cone crusher manufacturer Magellan's Wiluna mine has become in care and maintence given that April last year right after a spate of lead scares led the planet Minister Bill Marmion to evaluation the miner's conditions.

Before the mine was shut down the company had aggressive growth plans to ship up to 93,000 tonnes of lead carbonate a year by Fremantle Port.Just after mulling more than the company's license for a lot of months Mr Marmion announced in July the firm could carry on to transport its lead by means of Fremantle Port, but under rigorous ailments.Considering that then the miner has remained tight-lipped about its plans but flagged the 2nd quarter of next yr as being a possible commence date.

Throughout the ordeal Enirgi Group, owned by gold ore crushing machine Sydney-based personal equity firm Sentinent Group, has financially supported the business since it struggled to remain afloat.Enirgi Group president Wayne Richardson, who is now Magellan's chairman, even produced a trip to WA to inspire the State Government to fast-track its selection with regards to the miner's future.

Mr Richardson has now advised Magellan leave the day-to-day management of the Wiluna mine, that is touted to be within the top rated 5 with the greatest lead generating sources on earth, to Enirgi Metals Group.

EMG may be the biggest secondary lead smelting group in Australia with its two secondary lead smelters in Eastern Australia and possesses a wealth of expertise and practical experience from the lead market, Ivernia stated within a statement to your Toronto Stock Exchange overnight.Under a management providers agreement, EMG expects to deliver improved technical and operating practical experience, executive management and economies of scale from becoming a part of a larger group.

The proposal would save Magellan between $3 and $4 million a year from sharing resources, it stated.Ivernia's board will have to approve the services agreement.But ahead of restarting operations the company will should retain the services of and train employees, too as mobilse contractors, the Candian firm said.

The miner would have to come across as much as $25 million in funding to restart operations and pay out back its loan from Enirgi Group.Ivernia continues to take a look at numerous financing possibilities to meet these funding needs, including a combination of debt and equity,' it informed shareholders.

Ivernia has also requested that the Enirgi Group take into consideration an extension on the scheduled repayment date for the Enirgi Facility in an effort to cut back the all round funding needs in the course of restart, even so any this kind of repayment extension stays with the sole discretion of Enirgi Group.

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"Magellan set to restart Wiluna lead mine" was written by Mary under the Business category. It has been read 1457 times and generated 0 comments. The article was created on and updated on 17 October 2012.
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