Feb 23 2012
The Bullant gold mine in Western Australia has stopped mining operations as the Kalgoorie Mining Company announced that it had missed production targets and also had seen its processing costs rising.
On Monday the company requested its shares be placed in into a trading halt until it can give further recapitalization guidance. Shares in Kalgoorie Mining last traded at 4.9 cents.
A company statement was issued to say that the mine would be put in care and maintenance following a detailed review of operations and finances at the project. The consequences would mean reducing part of the workforce at the mine.
The statement added that while the board regretted the need for the reduction it was the most feasible alternative to preserving the value of the project. The exact number of jobs that will be cut were not mentioned and it is not yet clear how many mine workers will be affected by the decision.
The Bullant underground gold mine is located 65 km northwest of Kalgoorie. It was initially operated by Barrick Gold Mining Corporation, the largest gold miner in the world. Barrick Mines is the Australian subsidiary of Barrick Gold Mining Corporation.