(Ecofin Agency) – Trevali Mining has been working for more than two years on a project to increase Rosh Pinah’s zinc production to an average of 135 million pounds by 2024 (compared to 66 million expected in 2022), while increasing also the production of lead and silver.
The Canadian mining company Trevali Mining has decided to resort to the Companies’ Creditors Arrangement Act (CCAA). This is what she announced on Monday August 22, explaining this measure by a delicate financial situation which also obliges her to suspend a $111 million project intended to increase the production of zinc/lead/silver from its Rosh Pinah mine in Namibia.
The company has been going through financial difficulties for several months due to the drop in mining production. At the end of the second quarter, Trevali notably reported a non-cash following-tax impairment loss of $23.7 million for the Caribou (Canada) and Perkoa (Burkina Faso) zinc mines.
At Canada’s Caribou zinc mine, low productivity rates and issues with the availability of mining contractor equipment and resources led Trevali to put the asset on maintenance and upkeep. To this must be added the interruption of zinc production at Perkoa since the death of eight workers due to the flooding of underground installations in April.
Trevali warns it will default on debt, cans N$330m Rosh Pinah early works programmehttps://t.co/g9bDUPj4B2 #namibia #mining pic.twitter.com/q8quq6Fg49
— The Brief (@TheBriefLive) August 17, 2022
The only good news comes from the Namibian mine where production forecasts have been revised slightly upwards. After producing 33.8 million pounds of zinc in the first half, Trevali is now targeting 62-66 million pounds for the full year, up from 58-66 million pounds the previous year.
Emiliano Tossou
