Aditya Birla tumbles on mine closure

Perth-based miner Aditya Birla Minerals disclosed today it has stood down the majority of employees at its Nifty copper mine as it continues to investigate suspected ground subsidence.

The company said it was unable to estimate likely production this year because it does now know when mining will resume.

As such, it wanted to extend a suspension of its shares, which has been in force since 21 March, when the Department of Mines and Petroleum prohibited all mining operations.

However, the ASX did not grant permission for the suspension to continue.

The company’s stock fell 5.5 cents to 24 cents today, continuing a three-year decline.

Aditya said its future operations were dependent on investigations it is undertaking to ascertain the state of the underground mine.

The miner also released today its results for the year to March 2014, disclosing a 37 per cent slump in sales revenue $315 million and a reduced loss after-tax of $224,000.

The company attributed these results to the Mt Gordon mine having been on care and maintenance since April 2013 and a decline in average copper grade at Nifty.