Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

China Nonferrous now moving on from avalanche and landslide damage

Insurers have said they'll pay, but it's been a big clean up job at Pakrut following the worst snowfall for 50 years
Gold bars
Gold production is expected to resume next year

China Nonferrous Gold Limited (LON:CNG) is now well into the repair and clean-up process at the Pakrut gold project in the Republic of Tajikistan, following the biggest snowfall for 50 years earlier in 2017.

Access roads to the mine have been repaired and a temporary power solution is now in place, and with power restored, drainage work was completed by the end of June 2017.

READ: China Nonferrous Gold signs short-term financing deal with shareholder

The repair and restoration of explosives library, oil depots and other facilities is ongoing.

Meanwhile, discussions with the company’s insurance provider continue with an initial claim of US$10.32mln submitted.

Production is now expected to resume in the first quarter of next year.

READ: China Nonferrous Gold hires new managing director and finance director, more board changes expected to follow

The events brought significant economic loss to China Nonferrous and impacted the year-end audit, resulting in the auditors issuing a disclaimer of opinion in respect of the financial statements for the year ended 31 December 2016, primarily as a result of lack of access to inventory and to the mine site.

The Group has been working closely with the auditors in respect of these issues and good progress has been made following the restoration of access to the mine. It is the intention of management to have resolved them by 31 December 2017.

Conditions at the mine site were so severe that full access was restricted until May 2017. The avalanche destroyed three power towers and two-thousand metres of power lines, resulting in the complete interruption of power supply in the Pakrut mining area.

 

View full CNG profile View Profile

China Nonferrous Gold Limited Timeline

Related Articles

1537962543_Headframe-at-Evander.jpg
September 26 2018
Pan African has now ceased operations at a troubled asset and is once more looking forward to growth
Gold fragments
Thu
SP Angel said the company could be “one of the top-yielding precious metals producers on the London market”
Gold pour
March 15 2018
Total gold equivalent ounces (GEOs) produced clocked in at 189,456, up 17% on the 161,289 GEOs produced in 2016...

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use