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Be the first with the news that moves the market- Hudbay Minerals (HBM) has resumed underground mining activities at its 777 Mine in Manitoba following an incident that occurred on October 9
- Production was suspended when a hoist rope detached from a skip, causing it to fall to the bottom of a shaft
- While there were no injuries, the company was forced to put a hold on mining activities for several weeks while the damage was assessed and repairs were made
- The company said that full repairs could cost up to C$5 million and warned that fourth quarter production and sales will be materially impacted
- Hudbay Minerals (HBM) is currently down 3.87 per cent and is trading at $6.45 per share
Hudbay Minerals (HBM) has resumed underground mining activities at its 777 Mine in Manitoba following an incident on October 9.
The Toronto-based mining company revealed on October 11 that, during routine maintenance of a hoist rope and skip, the rope detached from the skip, causing it to fall down a shaft.
There were no injuries and all underground personnel were safely evacuated from the mine using a secondary ramp access.
Peter Kukielski, President and CEO of Hudbay Minerals, said at the time that it was an unfortunate event, but he was thankful there were no injuries and that safety protocols were closely followed.
“We have an exceptional team in Manitoba who have proven their ability to overcome challenging situations time and time again, and I am confident they will remedy this challenging situation safely and efficiently,” he added.
Hudbay immediately launched an assessment of the damage, which – according to a preliminary video inspection – is thought to be limited to the headframe and the bottom of the shaft in the skip compartment. Cage compartments and the ore loading area do not appear to be damaged, and the structural integrity of the shaft has not been compromised.
A full in-person inspection is scheduled to take place in early November and, assuming no other damage is identified, full could production will resume in December.
Hudbay says the cost of the damage could be up to C$5 million, and cautioned that the company’s production and sales figures will be materially impacted by the incident.
However, it also said that it would implement its production mitigation plans, and that its Manitoba business unit should still achieve its full-year production and financial guidance for 2020.
Hudbay Minerals (HBM) is currently down 3.87 per cent to $6.45 per share at 1:41pm EDT.
