13th Feb 2015 10:16
LONDON (Alliance News) - BHP Billiton PLC Friday said the largest of three mills at the Svedala mine in southern Australia will be out of action for the next six months after suffering an electrical fault, which will result in BHP losing up to 70,000 tonnes of production.
The Svedala mine produces copper, gold, silver and uranium and is part of the company's Olympic Dam project.
A complete diagnostic review was undertaken by the company, which revealed there was damage to the motor stator coil of the mill. The repair and remediation plan is being developed, and the company confirmed the mill will be out of service for approximately six months.
BHP Billiton plans to use the six month period to bring forward some of the maintenance activities and preparatory work required to support the underground extension of the southern mine area, and said the two other mills at Svedala will continue to operate as normal.
However, as a result of the suspension of the primary mill, other processing activities on site will be scaled back as well, and BHP has forecast it will lose between 60,000 to 70,000 tonnes of production before the mill comes back online in September, it said.
BHP shares were up 3.3% to 1,543.00 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
BHP Billiton PLC