Alphamin Resources has suspended mining operations at its Bisie tin mine in the DRC due to advancing rebel military groups. The safety of employees is the company’s main concern, prompting an evacuation of non-essential personnel. Stock prices have significantly dropped amidst ongoing violence in the region, although the company remains hopeful for peace talks.
Alphamin Resources has halted operations at its Bisie tin mine in the Democratic Republic of Congo, prompted by advancing insurgent military groups. The Toronto-listed firm announced on Thursday that these groups had progressed westward toward the mine after seizing the town of Nyabiondo on March 9, followed by Kashebere on March 12, which is located 13 kilometers west of Nyabiondo.
In light of the escalating situation, Alphamin has decided to evacuate all mining staff except for essential personnel necessary to maintain security and care of the mine. The company emphasized that ensuring the safety of its employees and contractors is paramount and currently unattainable.
As a consequence of these developments, Alphamin’s shares plummeted by 20%, contributing to a total decline of 41% over the past six months. According to United Nations estimates, heavy clashes between the Congolese armed forces and a coalition of rebels, notably the Rwanda-backed M23 group, have resulted in significant fatalities and the displacement of hundreds of thousands of individuals since hostilities began on January 27 in Goma.
Despite these challenges, Alphamin expressed optimism towards upcoming peace talks set for March 18 in Angola. The firm, primarily owned by the U.S. government, has engaged a U.S. company to advocate for diplomatic intervention to address security threats in the region.
The company continues to monitor developments closely, with hopes to eventually return personnel to the Bisie mine and resume operations when conditions permit. Furthermore, Alphamin is evaluating the implications of the mine’s temporary suspension on its financial performance, which may delay its annual financial results originally scheduled for release on March 14.
The suspension of operations at Alphamin’s Bisie mine underscores the severe impact of increasing military hostilities in the region. The company’s focus remains on ensuring employee safety, while it evaluates the implications of this situation on its operations and finances. The upcoming peace talks present a glimmer of hope for stability, as Alphamin seeks to resume production in the future.
Original Source: www.miningmx.com
