Printer Friendly

INTERNATIONAL MAHOGANY CORP. ANNOUNCES THAT MINING HAS BEEN TEMPORARILY SUSPENDED AT TUINA

 INTERNATIONAL MAHOGANY CORP. ANNOUNCES THAT
 MINING HAS BEEN TEMPORARILY SUSPENDED AT TUINA
 VANCOUVER, British Columbia, Aug. 24 /PRNewswire/ -- The management of International Mahogany Corp. (Toronto: IMY) reports that a dispute has arisen between the company and the mining contractor responsible for mining ore at the Tuina copper mine in northern Chile. The dispute has arisen because of the company's refusal to pay the contractor for inadequate work and inaccurate and excessive billings. In an attempt to pressurize the company into paying these unacceptable bills, the contractor requested that the Chilean court prevent the shipments of the copper precipitates owned by the company, which are due for shipment to the United States for treatment, until the dispute is resolved. Under Chilean law, the court is obligated to act on any such request irrespective of the validity of the claim, the onus being on the company to provide evidence to the contrary. Management is confident of its position in this regard, and has firm evidence of inaccurate and excessive claims and fraudulent representations made by the contractor, and is hopeful that the injunction will be lifted shortly. Further announcements will be made regarding changes in the status of this situation.
 The company has commenced procedures for the selection of a new mining contractor. Although mining has been suspended at the Tuina copper operation, the production of copper precipitates continues as the copper ore, currently present on the heap leach pads, is leached.
 The company has selected Krebs Engineers and Dremco of the United States to perform the engineering and design of a solvent extraction, electrowinning (SX/EW) facility for the Tuina operation. Krebs is undertaking responsibility for the design of the solvent extraction section, and Dremco will design the electrowinning facility. Work is currently underway, and preliminary design parameters and equipment sizing should be completed within the next ten days. The company is currently discussing financing arrangements with several lending institutions in Chile and elsewhere for the financing of this facility. Construction is anticipated to commence during the fourth quarter of this year. Direct operating costs are anticipated to be lower than 45 cents per pound of produced copper once the SX/EW facility becomes operational.
 -0- 8/24/92
 /CONTACT: Nick DeMare of International Mahogany, 604-685-9316/
 (IMY) CO: International Mahogany Corp. ST: British Columbia IN: MNG SU:


EH -- LA014 -- 2587 08/24/92 12:27 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 24, 1992
Words:395
Previous Article:MIDAS HOSTS RUSSIAN AND LATVIAN DELEGATES
Next Article:STANDARD PRODUCTS DECLARES INCREASED DIVIDEND
Topics:


Related Articles
MAHOGANY ANNOUNCES COMMENCEMENT OF OPERATIONS AT THE TUINA COPPER MINE IN CHILE
INTERNATIONAL MAHOGANY ANNOUNCES UPDATE
INTERNATIONAL MAHOGANY ANNOUNCES AGREEMENT
INTERNATIONAL MAHOGANY CORP. CHILEAN COURT ORDER LIFTED
MUD FLOW DELAYS REHABILITATION OF ATLAS' CONSOLIDATED COPPER MINES AFTER TYPHOON
NORTH LILY MINING CO. ANNOUNCES A NEW PRODUCTION AGREEMENT ON ITS CHILEAN COPPER DEVELOPMENT 'TUINA'
NORTH LILY MINING CO. ISSUES UPDATE
NORTH LILY ANNOUNCES COMPLETION OF DRILLING PROGRAM, COMMENCEMENT OF A SECOND DRILLING PROGRAM
INTERNATIONAL MAHOGANY ANNOUNCES COMPLETION OF DRILLING PROGRAM, COMMENCEMENT OF A SECOND DRILLING PROGRAM
Yuma Enters Into Arrangement With Generale Bank, Belgium for $US 45 Million Financing

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters