Alphamin Resources has suspended operations at its Bisie tin mine in the DRC due to advancing insurgents. The company has evacuated non-essential staff to prioritize safety, while shares have dropped 20%. With ongoing conflicts resulting in casualties, Alphamin is hopeful for upcoming peace talks in Angola, though it delays financial results due to the situation.
Alphamin Resources has suspended operations at its Bisie tin mine in the Democratic Republic of Congo due to the advancing presence of insurgent military groups. On March 9, these militant groups took control of Nyabiondo, followed by Kashebere on March 12, which lies approximately 110 kilometers northwest of Goma. In light of these developments, the company has decided to evacuate all non-essential mining staff while retaining only essential personnel for security and maintenance purposes.
The company emphasized that the safety of its employees and contractors is paramount, stating, “The safety of the company’s employees and contractors remains its top priority and cannot be assured at the present time.” As a direct consequence of this situation, Alphamin’s shares have experienced a 20% decline, with total losses reaching 41% over the past six months.
The conflict has reportedly resulted in significant casualties, with hundreds killed and many displaced due to clashes between the Congolese armed forces and a coalition of rebels led by the Rwanda-supported M23 group, which began on January 27 in Goma. The violence escalated with rebels subsequently capturing Bukavu, another key city.
Alphamin expressed optimism regarding upcoming peace talks scheduled for March 18 in Angola. Since the company is majority-owned by the US government, it has engaged a US firm to facilitate diplomatic efforts concerning the security situation. It noted that communication regarding the situation is ongoing and that they will continue to monitor developments closely.
In the interim, Alphamin is evaluating the impact of the temporary suspension on its operations, which has delayed the publication of its financial results intended for March 14. However, the company anticipates that these delays will not be significant. Prior to the outbreak of conflict, Alphamin had been performing well at Bisie, forecasting a record production year, with a projected output of 20,000 tons for the current year, accounting for 6-7% of global tin production once operations normalize.
In summary, Alphamin Resources has halted mining at Bisie due to the imminent threat posed by insurgent groups in the Democratic Republic of Congo. The company’s top priority is ensuring the safety of its personnel amid escalating violence. While operations are temporarily suspended and financial disclosures are delayed, Alphamin remains hopeful for peace talks that could stabilize the region and permit a return to normal operations.
Original Source: www.miningmx.com
