Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Orvana Minerals Deals With Labour Negotiations At UMZ Mine Amid "Intermittent" Strikes 0 comments
    Jul 19, 2013 2:31 PM

    Orvana Minerals (TSE:ORV) says that "intermittent work stoppages" are being seen at its Don Mario UMZ open-pit mine in Bolivia, as the company is in the midst of the annual union wage negotiations as mandated under Bolivian law.

    The strikes were started with formal notice from the union for a set short period of time. Orvana said Friday it is focused on finalizing the annual wage contract and bringing operations back to normal as soon as possible.

    "We expect to resolve these annual mandated wage negotiations in a timely manner and will provide an update once negotiations are complete," said interim president and CEO of Orvana, Michael Winship.

    Earlier this week, the miner announced the suspension of operations of its leach-precipitation-flotation (LPF) plant at its UMZ deposit for the foreseeable future, as a consequence of market conditions and other factors.

    As a result of the suspension, management of the Toronto-based gold and copper producer says it expects to record a pre-tax impairment charge of approximately $6.5 million for the third quarter of fiscal 2013 relating to the copper-gold-silver Upper Mineralized Zone (UMZ) mine. The company expects to be able to complete a final impairment assessment by the release of its third quarter results.

    Orvana, a multi-mine producer with assets in Spain, Bolivia and the U.S., cited the costs of consumables for the plant and labour, which have increased substantially since start-up of the plant, as well as the fact that recoveries and maintenance of LPF oxide feed "have been inconsistent and more recently have been well below forecast", according to a company statement released with the announcement.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.