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LONDON (Alliance News) - Metals Exploration PLC Wednesday said it has been forced to suspend "certain works" at the Runruro project in Philippines after authorities evaluated the damage caused by Typhoon Lando.
On October 18, Typhoon Lando swept through the northern Philippines and was followed by heavy rain, flooding and winds close to 124 miles per hour, causing extensive damage to the areas hit.
Its track passed close by to the Runruro project as it moved in a north westerly and then northerly direction across Northern Luzon. It was recorded as a "super typhoon event" and was slow moving which resulted in the Runruno project being impacted by strong winds and intense rain fall over two days.
Beyond the immediate concerns the remainder of the project "withstood the impacts of the typhoon well," the company said.
Metals Exploration said the Mines and Geosciences Bureau has visited the site and demanded the company temporarily suspends "certain works" near the residual storage impound, the Malilibeg dump site and tailings pipeline bench area of the Runruno project.
Metals Exploration has also been ordered to carry out rehabilitation and clean-up works to the areas affected by excessive water run-off. It stressed that "no other mine site operations are affected by the suspension".
The company reiterated that no structural damage was caused by the typhoon, and said it has already begun remedial work to resolve the problems highlighted by authorities.
"The company is working closely with the Mines and Geosciences Bureau to agree a programme of work to be undertaken to enable the suspension order to be lifted. It is expected that the programme will be agreed within a week for immediate implementation," said the company.
"Commissioning of the processing plant is continuing, however the commencement of processing operations will be delayed until the suspension order is lifted. At this time it is not possible to estimate when this might occur," it added.
Metals Exploration shares were up 3.7% to 3.50 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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