South African miner Simmers and Jack said on Monday it would pursue a slower and more selective build-up of its projects due to the global credit crunch, joining other metal producers hit by the crisis.
In April, the company outlined development projects at its two gold mines to cost $99,8-million over the next five years, but said it would now prioritise them owing to the funding crunch.
”[Our new strategy] reflects a slower and more selective build-up of these projects to be largely funded from cash flow from operations,” the company said in a statement.
It said it would accelerate projects only if it secured external funding, which it was currently seeking.
Simmers has previously said it plans to produce one million ounces of gold by 2012 and 2,8-million pounds of uranium by 2010. It runs the Buffelsfontein and Transvaal gold mines. Simmer’s also holds a 62,4% stake in First Uranium.
Also hurt by the credit crunch are African Rainbow Minerals (ARM) and Uranium One.
ARM said on Friday uncertainties in the global economy had led to a slowdown in demand for ferrochrome forcing it to shut two of five ferrochrome furnaces, and cut sales of chrome ore.
Uranium One said last week it had shut its Dominion mine in South Africa, citing declining prices for the commodity used as a nuclear fuel and difficulties in raising cash to develop the mine owing to the credit squeeze. – Reuters