Zinc producer CBH Resources has announced that it will no longer invest in the Rasp zinc-lead-silver mine’s development, resulting in the mine moving towards a staged closure during 2023–24.
The Rasp mine is located in Broken Hill, New South Wales.
CBH Resources acquired the Rasp mine tenements from Normandy Mining in 2001. Normandy ceased operations in 2002.
After CBH Resources commenced surface exploration activities and developing the Rasp underground exploration decline, the project was approved in 2011 and it was officially opened in July 2012.
Following CBH Resources’ parent company Toho Zinc conducting a thorough review of the mine’s business plan, it decided that the Broken Hill operations will move to a staged closure during 2023–24 and it will fulfil rehabilitation obligations beyond this period.
Toho Zinc has now said “it is not in a position to invest” in the mine’s development and “it would be realising a significant financial impairment” from the Rasp mine assets.
“Unfortunately, as a result of this difficult business decision, there will be a workforce reduction this year with further reductions as BHO move to a staged closure in 2024,” the company said.
“BHO have provided the opportunity for our employees to exercise the option for voluntary redundancy during this period. In the coming days BHO will consult with all of our employees and put in place support services to assist people who are affected as a result of these changes.”
CBH Resources is now looking for a new owner to take over the Rasp mine’s operations, particularly one that can develop the nearby Northern Main Lode and Centenary deposits.
“While this is a difficult and challenging situation for our employees and the wider Broken Hill community, CBH’s priority and responsibility has and continues to be, to provide a safe, reliable and sustainable operation for as many of our people and for as long as possible,” Toho Zinc said.
The ABC reported last week that the mine’s closure could impact over 200 workers.
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