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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.


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