PERTH (miningweekly.com) – ASX-listed mining services provider MACA on Tuesday announced plans to cease operations in Brazil, effective from this month, following the early termination of a contract with a subsidiary of ASX-listed Oz Minerals.
MACA’s contract with Oz Minerals at its Antas copper mine, was due to conclude in 2020.
The company on Tuesday said that it will retain ownership of the majority of the plant and equipment currently used at Antas, and will dispose of assets that are not redeployed to other operations.
The company expects to declare a non-cash impairment of about A$2-million related to the cessation of the Brazilian operations.
In addition, there will also be unrealised foreign exchange losses that will be triggered with the closure of the subsidiary, of around A$5-million, based on the current exchange rates.