Koolan Island operation halts due to mine flood

CANBERRA (Scrap Monster): A damaged wall of the mine, which has been under repairment and construction, since the  month of October, was breached by the high  tides around the pit on Tuesday night. Anyway, according to the owner  of the mine, Mount Gibson iron ore, no damage was caused to the workers, but the production activities in the mine has been suspended, along with the non essential activities in the mine.

An announcement from the  company declared that, the extents of the impacts which will be caused by the destruction caused in the Koolan Island operations, are not yet estimated. At this point of  stage, the company could not deliver a detailed report regarding the expected impacts due to the crisis. The company will also be unable to publish the sales guidance for the year 2015.

The company further stated that, the  current halt on the production will be valid until 28^th of November, if the  company  fail to give the details regarding the possible impacts of the matter, the mine will go under voluntary suspension. The last announced share price of Mount Gibson iron ore had been 40 cents.

The company before the collapse of the pit wall had announced that the repair of the mine would take an amount of 10 million dollars and the duration of this procedure will be 3 months at the least.