Last checked at 19 Dec 2008 07:00
GRIFFIN MINING LIMITED
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773
E mail: griffin@griffinmining.com
TRADING STATEMENT
19th DECEMBER 2008.
Griffin Mining Ltd ("Griffin" or "the Company") announces that it will temporarily suspend production for 3 months at the Caijiaying zinc gold mine in China from the end of December 2008 to facilitate mine development, maintenance work and plant upgrades. In view of the current low market prices for base metals and the regular annual scheduled suspension of operations during the forthcoming Christmas and Chinese New Year holidays, the Company intends to use this disrupted production period cost effectively; develop the next mining levels without interruption from blasting and haulage traffic; to lubricate, replace and overhaul existing sections of the processing facilities; and complete ongoing upgrade construction.
A reduced workforce will be maintained on site to complete these tasks and provide continuing full security. Non-essential staff and contractors have been either granted vacation leave at reduced salary levels or suspended from operations. The Chinese and associated Griffin directors have volunteered to accept reduced board fees during this period of suspended operations.
In view of the substantially deteriorating conditions in the mining market and the subsequent loosening in the labour market, all contractors' operating contracts subject to renewal will be reviewed and renegotiated during the suspended period.
Mining and processing is expected to recommence on the 30th March 2009.
Chairman Mladen Ninkov commented: "Whilst Griffin, as a very low cost producer of zinc, continues to perform credibly in this very low commodity price environment, the current low zinc prices afford the Company the luxury to shut down operations at Caijiaying for a relatively short period to undertake development, maintenance and construction effectively and efficiently without incurring the large economic cost of a shutdown of operations in a high commodity price environment. This suspension allows the Company to position itself to be in peak operational efficiency when operations recommence at the end of March."
Further information
| Mladen Ninkov - Chairman | Telephone: +44(0)20 7629 7772 |
| Roger Goodwin - Finance Director | |
| Griffin Mining Limited | |
| Adrian Hadden | Telephone: +44(0)20 7523 8350 |
| Collins Stewart Limited |
Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM).
The Company's news releases are available on the Company's web site: www.griffinmining.com