Zinifex sees no cost from damaged ship (original) (raw)

February 15, 2007 — 4.34am

Zinc miner Zinifex does not expect any material cost after its ship MV Wunma became stuck and damaged in heavy seas as a result of Cyclone Nelson last week.

It also said that the incident would mean only moderate delays to its concentrate deliveries.

"Subject to receiving all the necessary approvals and certification, we are confident that the Wunma will return to service by early next week," Zinifex said in a statement.

"On this basis, we do not expect any disruption to production at Century Mine and only a moderate delay to our concentrate deliveries.

"Accordingly we do not expect that there will be a material cost associated with this incident."

The ship was carrying 5,000 tonnes of zinc concentrate worth US15million(US15 million (US15million(A19.32 million) when it got into distress in the Gulf of Carpentaria during Cyclone Nelson.

The miner said the electrical system of the vessel needs repairs, but that they are expected to be finished by the weekend and it sustained no significant damage.

The cargo is also in good condition, with little water damage, and Zinifex said it will be recovered and sold.

The miner confirmed previously that production at its Century open-pit zinc mine in north-west Queensland was continuing unaffected by the incident, which led to the crew of 10 being rescued and the ship anchored.

Zinifex's shares rose 65 cents or four per cent to $16.35 on Wednesday.

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