Arehada Mining Limited announced that it has initiated a temporary shut down of its operations at its mine and zinc plant.
Arehada China has made dramatic reductions in its operational costs and other expenditure over the last several months. However, current zinc and lead prices have made the mine and zinc plant unprofitable. Accordingly, the operations are being suspended to prevent operational losses. The Company believes that the majority of other similar mines in the Inner Mongolia Autonomous Region have also shut down operations due to low commodity prices.
The zinc plant and mine infrastructure are being prepared for the orderly suspension of all activities. Staff at the zinc plant and mine is being reduced to a level that will meet care and maintenance requirements.
Arehada Mining Limited is engaged in the exploration, development, extraction and production of zinc, lead and silver in Dongwuzhumuqinqi, located in Inner Mongolia, China. Arehada produces zinc and lead concentrates, which are then sold to smelters in China.
Arehada has completed construction of a zinc processing plant, to produce zinc calcine and sulphuric acid.