£500,000 losses for Anglesey Mining

Nov 29 2008 by Aled Blake, Western Mail

THE global economic slowdown and investment in an iron ore mine project in Canada has seen North Wales mining firm Anglesey Mining make losses of nearly £500,000.

However, the company, which was in negotiations to sell its operation at Parys Mountain in Anglesey earlier this year, said it was “in a position to weather the current economic difficulties”.

Anglesey Mining said development at its Labrador Iron project in Canada, which it has 50% stake in, is at a high level. Around 6,500 tonnes has been extracted from the site, which has been crushed and screened and is being shipped potential markets.

John Kearny, Anglesey Mining chairman, said: “Discussions continue with a number of potential purchasers of iron ore product.

“There has been a major decline in spot iron ore prices in recent months but the company expects to sell most of its product based on the annual benchmark prices agreed between the major suppliers and steel mills.”

At Parys Mountain, talks with Australian company Western Metals, over the acquisition of the site collapsed in October.

Mr Kearny said: “Prices for base metals and in particular zinc and lead have fallen significantly during the last three months. Nevertheless the board believes that the Parys Mountain project, with its asset base still intact and its planning permissions still valid, is well placed to take advantage of the upturn that is likely to follow these price falls.

“In the meantime development work on Parys Mountain will be maintained at low levels. In common with all other resource companies we are in a very uncertain economic climate. However Parys Mountain can be maintained on a minimum expenditure basis with no further significant demands on capital until markets improve.

“Juno, the group’s major shareholder, has indicated that it intends to continue its financial support, including making available further cash advances. Labrador Iron continues to benefit from its strong cash position.”