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Windimurra restart could take months - Atlantic

Windimurra restart could take months - Atlantic

Photo by Bloomberg

17th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Vanadium miner Atlantic on Monday told shareholders that the cost of material damages and business interruption from the recent fire at its Windimurra operations, in Western Australia, was estimated to be about A$100-million and that it would take months to get production to pre-fire levels.

At the start of February, Atlantic suspended share trading after a fire at the Windimurra beneficiation plant.

Atlantic estimated on Monday that it could take up to nine months to rebuild the fire-damaged beneficiation plant and to ramp up productions to where it was prior to the fire.

The miner reported that progressive insurance payments and a proposed long-term funding solution, which was currently under discussion, were designed to enable the business to continue and to rebuild the beneficiation plant, as well as to restart vanadium production as soon as possible.

Meanwhile, Atlantic’s wholly owned subsidiary Midwest Vanadium had also been given a 30-day grace period tp pay a $5-million deposit into an interest reserve account.

The subsidiary has been notified by an ad hoc group representing the majority of the company’s senior secured note holders that they would not take any action prior to February 25.

Atlantic’s shares would remain in suspension until further notice.

Edited by Creamer Media Reporter

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