K92 Mining Inc (KNTNF)

[ashy2classy]

Here's the problem...looks bad.

http://postcourier.com.pg/k92-mine-damage-valued-around-k6-9-million/


September 4, 2017

By ROSALYN ALBANIEL

The developers of the mine in Kainantu have reported the destruction and damage to its assets to be between US$2-3million (K6-9million).

The company has begun its rebuilding process, but the damage has set the company back quite substantially.

This was revealed by the Mineral Resources Authority managing director Philip Samar at a press conference in Port Moresby yesterday.

Mr Samar said the firm had advised that as a result it has since been forced to stop its underground production for at least a month.

The loss in revenue as a result is estimated to be US$2.5 million (K7.9million).

The firm also reported that about 200 workers and contractors would also have to be stood down or laid off in the short term.
Mr Samar said while the mine workers have returned to site following the mayhem he had been advised that it would take up to two months before it recommences commercial production.

The ripple effect of this he said would be a delay in benefits to the country including royalties.

He said among the properties burnt and damaged were the firms underground cablings, the prime movers all amounting to an estimated K13million.

The latter the developer K92 Mines had advised required a lead time of about six months to order.

He said there were other costs also likely to be incurred including a penalty clause from their marketing contracts.
“Those are some of the costs that come with us acting the way we did,” the MD stated.

Mr Samar said the situation was quite disappointing and concerning especially for the developer which after two years had just kept true to its word turning around a mine which two other previous developers had relinquished ownership of.

Further and only after just one shipment.

Meanwhile, the company in its brief shows expenditure on mine restart was US$40million, while revenue from its first and only sale to date US$3million.

The mine had provided employment for 500 workers, 300 local landowners, 170 nationals and 30 expatriates.

Its wages bill annually is K6.6million for local landowners, while total operating expenditure K75million per annum.

In the two years it has contributed to the socio-economic development in the local community it operates in including haus krai’s.