Straits reviews future of its WA mine

20/11/2008 - 12:18

Straits Resources is reviewing the viability of two if its copper mines, including the Whim Creek copper mine in WA, after a dramatic drop in the world copper price.

Straits Resources is reviewing the viability of two if its copper mines, including the Whim Creek copper mine in WA, after a dramatic drop in the world copper price.

Straits confirmed that reports of this ongoing assessment by the company were accurate and reflected "commodity market reality".

Chief executive Milan Jerkovic said the company was closely reviewing whether to continue mining at the Tritton copper mine in New South Wales following a plunge in the value of commodities.

Mr Jerkovic said the mine was marginal due to a halving of copper prices this year and that he was prepared to take tough decisions on the mine's future if conditions did not improve.

"Nothing is imminent, but you've got to look at the costs of these things and be prepared to make hard decisions," he said in statement.

"We're not prepared to operate at a loss."

Shares in Straits were down six cents, or 7.06 per cent, at 79 cents at 1419 AEST.

Full announcement below:

Straits Resources Limited ( Straits ) (ASX: SRL) wishes to provide statements contained in a Reuters article of 18 November at 14:38 following a request from the ASX.

In that article, Straits CEO Milan Jerkovic stated that SRL is reviewing whether to keep mining its Tritton copper mine (in NSW) amid a dramatic drop in the world copper price . He added that the mine is marginal due to a halving of copper prices this year and said he was prepared to take tough decisions on the mines future if conditions didn t improve...

Nothing is imminent, but you ve got to look at the costs of these things and be prepared to make hard decisions... We re not prepared to operate at a loss... . Mr Jerkovic said.

The statements in the Reuters article reflect commodity market reality which has been extensively reported on over the last 6 months.

Like all mining companies and against the backdrop of current commodity prices, Straits conducts ongoing reviews of all its assets including its two copper operations Tritton and Whim Creek, as any prudent operator would.