Alphamin Resources has suspended mining at its Bisie tin mine in the DRC due to advancing rebel groups. As safety concerns mount, the company has evacuated non-essential staff and is monitoring the situation. Peace talks are expected, and despite this disruption, Alphamin remains optimistic about future production targets.
Alphamin Resources has halted mining operations at its Bisie tin mine in the Democratic Republic of Congo due to advancing insurgent military groups. The company announced on Thursday that these militant groups have moved westward towards the mine, occupying the town of Nyabiondo on March 9 and advancing to Kashebere by March 12. Consequently, all non-essential operational staff have been evacuated, with only critical personnel remaining to maintain the site and ensure security.
The company emphasized that the safety of its employees and contractors is its utmost priority, which cannot be guaranteed at this time. Following this announcement, Alphamin’s shares plummeted by 20%, accumulating losses of 41% over the past six months. The United Nations reports significant casualties and displacement due to ongoing clashes between Congolese armed forces and a coalition of rebels led by the Rwanda-backed M23 group, which began in late January.
Alphamin expressed optimism regarding upcoming peace talks scheduled for March 18 in Angola, noting its majority ownership by the US government, which has led to the appointment of a US firm to advocate for diplomatic intervention concerning current security threats. The company intends to monitor developments closely and plans to return personnel to the site and resume operations when it can ensure safety.
Moreover, Alphamin is currently evaluating the implications of this operational suspension on its financial results. Although the company anticipated publishing its full-year results for December on March 14, it indicated that the filings would not experience significant delays. Prior to the unrest, Alphamin had projected a second consecutive year of record production at Bisie, with contained tin production increasing by 11% year-on-year to 17,324 tons and a target of 20,000 tons for the current year, representing approximately 6% to 7% of global production.
In summary, Alphamin Resources has paused operations at the Bisie tin mine due to escalating violence from insurgent groups. The company prioritizes staff safety while navigating the situation, hoping for a resolution through planned peace talks. Despite the operational halt, Alphamin aims to assess its financial impact and remain prepared for a return to operations when feasible.
Original Source: www.miningmx.com
