Almost three months after 29Metals completed the recovery of the Capricorn copper mine, the company has provided an update on the mine’s insurance claim.
In early March, north-west Queensland was impacted by 370mm of rainfall over a seven-day period, resulting in a loss of access to the Capricorn copper mine.
“The suspension of production and non-essential activities will impact production results for the current quarter,” 29Metals said in a statement at the time.
“However, the safety of 29Metals’ workforce and the management of water in accordance with 29Metals’ environmental responsibilities are the highest priority.”
The company then released an operational update which reported no significant safety issues despite the extreme weather.
After the record seven-metre flooding forced 29Metals to suspend its Capricorn mine operations, the company completed the mine’s recovery in late May.
The company notified its insurers of the loss and damage suffered due to the extreme weather in March. Those insurers have now responded to 29Metals’ preliminary claim submission.
“Insurers’ have confirmed indemnity for damage to property on the surface and associated business interruption, and agreed to make an initial unallocated progress payment of $24 million. The claim process for the balance of the surface property damage and associated business interruption is ongoing,” 29Metals said.
“In relation to underground loss and damage, based on 29Metals’ preliminary claim submission and information provided to date, insurers’ have taken the position that the policy does not respond. Further information has been requested.
“29Metals does not agree with the insurers’ position regarding coverage of the underground loss and will continue to work with insurers in relation to the further information required to advance this claim.”
The company is finalising its financial results for the six-months ended June 30 2023, which is expected to be published August 30 2023. It is said the results will be affected by the extreme weather at the Capricorn mine.
The full reinstatement of the Capricorn mine is scheduled for 2024.