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Mining company Nordic Mining is temporarily halting mining operations at Engebø to reduce costs and preserve liquidity. The decision follows the parties in negotiations over the company’s financial restructuring drifting further apart.
No agreement has been reached with the bondholder representative and the royalty holder on, among other things, new short-term financing and easing of the loan terms.
The shutdown will remain in place until further notice, and the company warns that a financial solution cannot be guaranteed.
Nordic Mining has previously warned of a risk of bankruptcy after problems ramping up production to planned levels. The company is also considering a sale if additional financing cannot be secured.
Chairman Kjell Roland has pointed to three possible outcomes: bankruptcy, a debt write-down and refinancing with existing lenders and shareholders, or a sale of the entire company.
Approximately 100 to 130 people work at the Engebø project and are affected by the uncertainty.
The share falls 6.8 percent in early trading.
