Mining operations at the Kombat mine in Namibia have been suspended. Trigon Mining made the announcement citing changes in global economic conditions which have affected copper prices.
The Kombat Copper Project is the flagship project of Trigon Metals Inc., with the Company’s mining and prospecting licence areas covering an area of more than 7,500 ha in the Otavi Mountainlands in Namibia.
The Kombat Project is comprised of three mining licences, which produced approximately 12.46 million tonnes of Copper between 1962 and 2008, at a grade of 2.62%. The other two mining licences are within close proximity to Kombat at Gross Otavi and Harasib, which are believed to be highly prospective for lead and zinc. In addition, the Company also holds an interest in two exclusive prospecting licences, which represent a potential strike extension of Kombat.
The suspension has resulted in the retrenchment of a number of employees seven months after the mine started production. The retrenchments are effective from 31 August, but the involved employees would not be required to work during August as the mine will go into care and maintenance mode on the start of the month. The firm has also decided to halt its open-pit operations while the copper prices remain at the current low levels. Operations are expected to resume if conditions allow the company to competitively return to the market.
“Trigon believes the current pricing represents a temporary dip in the market, and that the price will recover to levels sufficient to support Kombat’s operations in the coming months,” said the firm.