JOHANNESBURG, May 26 (Reuters) - Ivanhoe Mines ( IVPAF )
said on Monday it had suspended its output forecast for this
year after seismic activities at its giant copper mine in the
Democratic Republic of Congo halted underground mining
operations.
The Canadian miner said guidance for the Kamoa-Kakula mining
complex, initially set between 520,000 and 580,000 metric tons
of copper, and its planned ramp up at the smelting plant, had
been withdrawn.
Ivanhoe shares tumbled as much as 15.6% in morning trade in
Toronto. The stock is down 36% so far this year, according to
LSEG data.
The Vancouver-based miner said on May 20 it had initially
suspended some mining activities in a section of its Kakula mine
after seismic activities or underground tremors. The company
said on Monday that it was forced again to suspend operations
over the weekend due to seismic activities over the past few
days.
"Seismic activity at the Kakula underground mine has
continued to occur intermittently over the past few days,"
Ivanhoe said.
The tremors have also affected underground infrastructure,
including water pumping and there has been an increase in water
inflow levels into the Kakula mine, the miner said.
The operations at the adjacent Kamoa mine had not been
interrupted, it said.
The suspension of production guidance "leaves uncertainty as
we await further updates to determine the potential impact on
production," RBC Capital Markets said in a note.
On Friday, Ivanhoe contradicted joint venture partner Zijin
Mining about the extent of problems at the mine.
The Chinese miner said on Friday in a public filing that the
seismic activity could affect this year's planned copper
production, a statement that Ivanhoe disputed on the grounds it
was still conducting investigations.
The Congo mines produced about 437,000 metric tons of the
metal last year.
On Monday Ivanhoe said it and Zijin would work together to
bring the Kakula mine back into production as soon as possible.