Carpathian to cut output at Brazil mine amid water shortages

25th June 2015 By: Natalie Greve - Creamer Media Contributing Editor Online

JOHANNESBURG (miningweekly.com) – Carpathian Gold is preparing for a temporary reduction in the levels of mining and processing activities at the Riacho dos Machados (RDM) mine, in Brazil, for the next few months as a result of water shortages.

The TSX-listed company explained on Thursday that RDM, which was owned by wholly-owned subsidiary Mineração Riacho dos Machados (MRDM), was situated in a semi-arid region of Brazil and remained heavily dependent on the yearly rainy season for its supply of water.

However, the amount of rain received during the most recent season had fallen “considerably” short of yearly averages.

“Consequently, owing to the restriction on the availability of water, which is required for the operations at RDM, the mine will move toward minimal production levels, depending on the availability of water.

“While it is difficult to predict for how long operations will be reduced, normal production will not resume until the start of the next wet season, which typically begins in October,” Carpathian stated.

MRDM was currently in discussions with all the stakeholders in Brazil to ensure an orderly reduction in operations.