Straits Resources had mixed news for the market today, suspending operations at its antimony and gold mine in NSW but qualifying for a second payment from the sale of one of its Asian assets.
The company anticipates processing activities at Hillgrove will be initially suspended for six month to conduct investigations into various issues that have been affecting the below design levels of saleable antimony produced there over the past 12 months.
During the suspension, operating costs at Hillgrove will reduce from $3.6 million to less than $700,000 a month to cover the cost of continued metallurgical investigations, underground development and exploration.
And the Indonesian government has formally completed a process for rezoning land use across South Kalimantan,including a significant area within Straits Asia's Sebuku coal concession that was previously restricted from mining.
Straits Asia is now in a position to execute its plans to recover valuable coal production from this area with anexpected timeline to production of approximately nine months.
This announcement clears the way for Straits Resources to claim the second instalment of US$115 million for the sale of its 60 per cent interest in Straits Bulk and Industrial Pty Ltd to the PTT Group of companies, which was completed in April 2009.
