ALPHAMIN Resources has suspended mining at its Bisie tin mine in the Democratic Republic of Congo as insurgent military groups bear down on the operation.
The Toronto-listed firm said in an announcement on Thursday the militant groups had recently advanced westward in “the direction of the mine”. This was after having occupied the town of Nyabiondo on March 9, the capital of the Osso-Banyungu sector located about 110 kilometres northwest of Goma followed by Kashebere a further 13km west of Nyabiondo on March 12.
As a result, all operational mining staff are being evacuated except for essential personnel required to keep the mine on care and maintenance and provide security, Alphamin said.
Explaining its decision to evacuate the mine, Alphamin said: “The safety of the company’s employees and contractors remains its top priority and cannot be assured at the present time”.
Shares in the company fell 20% taking losses over the last six months to 41%.
The United Nations estimates that hundreds of people have been killed and hundreds of thousands have fled for safety due to heavy fighting between the Congolese armed forces (FARDC) and a coalition of rebels led by the Rwanda-backed M23 group. Fighting first broke out on January 27 in the eastern city of Goma. By the middle of February rebels had taken a second city in the region – Bukavu.
Alphamin said it was “encouraged” by plans for direct peace talks which are scheduled for Angola on March 18. It added that as it was majority-owned by the US government, it had appointed a US firm to lobby for US diplomatic intervention regarding security threats.
“This matter is progressing,” it said.
“The company will closely monitor events as they progress with a view to moving personnel back to the mine site and resuming operations when it believes it can safely do so,” Alphamin said.
Alphamin said it was assessing the impact of the temporary suspension of Bisie and as a result was unable to publish its full year financial results ended December planned for March 14. It added, however, it did not expect the filings would be “materially delayed”.
The outbreak of hostilities is a blow for Alphamin considering the success it was having at Bisie. Just before Goma was captured it forecast a second consecutive record production this year from Bisie as it edged towards an expanded design capacity.
Contained tin production was 17,324 tons in the 12 months ended December, a 11% year-on-year increase. For this year, production is targeted at 20,000 tons – roughly 6% to 7% of world production – once ramp up of the processing plant processing Mpama South ore is complete.
