Perth-based copper miner Aditya Birla expects to save up to $5 million a month after it revealed a raft of cost saving measures in the wake of falling commodity prices.
Perth-based copper miner Aditya Birla expects to save up to $5 million a month after it revealed a raft of cost saving measures in the wake of falling commodity prices.
Perth-based copper miner Aditya Birla expects to save up to $5 million a month after it revealed a raft of cost saving measures in the wake of falling commodity prices.
In an update to the market today, Aditya said it has suspended crushing and stacking activities at its Birla Nifty mine in Western Australia, however copper recovery through leaching will continue until such time that activity becomes uneconomic.
"The decision has been taken in light of the reduced margins and to mitigate any cash outflows of the company," Aditya said.
The company added that it will change the current rostering system at the mine to generate savings through the "efficient and effective use of the company's employees".
Aditya said it has engaged external consultants to draw up an incentive scheme to motivate and reward employees.
Comment was being sought from Aditya at time of publishing.
Additionally, underground operations at the company's Mt Gordon mine in Queensland will be put into care and maintenance while the operation's mill will continue to run on mined ore and ore identified at the Esperanza waste dump.
Operations at Mt Gordon will be reviewed again at the end of March, the company said.
"Upon implementation of all the above initiatives, net savings of approximately AUD 4.0 million to 5.0 million per month are expected through all [Aditya] operations," the miner said.
Spot copper prices were last trading at around $US3390 per tonne on the London Metal Exchange, down from high of some $US8000/t reached last year.
Shares in Aditya were up one cent to 20c at 12:56 AEDT.