Mining and processing operations will remain suspended at the Rocklands copper site in north-west Queensland while owner CuDeco undertakes a restructuring plan.
This formal remedial program was expected to take a further two months to implement, the company said in a statement to the ASX this week.
The directors were confident the operation would move forward in a profitable, fully-funded and sustainable manner that point, it said.
CuDeco suspended operations at the site on August 31 and has since carried out maintenance work it said would provide more reliable performance from the processing plant.
Its directors advised this week that CuDeco-owned entity Cloncurry Infrastructure – which holds real estate assets in Cloncurry – had defaulted on repayment of a $2 million load due to the company’s ‘short-term funding challenges’ and that a receiver had been appointed to that entity.
The ASX statement said the directors believed the long-term funding solutions they were progressing as part of the operational and financial restructuring process for Rocklands would allow the debt to be repaid in full and for the receiver to be removed.