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Almonty Industries Inc. (TSXV:AII) temporarliy suspended mineral processing activities at its Los Santos Project in Spain due to an electrical fire. The fire destroyed the diesel generator power supply and caused severe damage to the electrical switching infrastructure on June 23, 2013, but the Company anticipates to restart by July 1, 2013.
As quoted in the press release:
The fire started in the generator room and the local fire brigade was called to the scene shortly after the fire was discovered. The blaze was quickly brought under control and extinguished, limiting the damage to the electrical supply building and the diesel generators, which were completely destroyed. No repairs to the damaged electrical supply building, diesel generators or electrical infrastructure will be necessary in order for the Company to connect to the state electricity grid.
The Company is working with its insurance adjusters to determine the extent of the damage and business interruption that is covered under its insurance policies. The Company has informed its customer about the disruption to processing and delivery of tungsten concentrate as required by its Long-Term Supply Agreement and will restore normal shipments as soon as possible.
Almonty Industries Inc. Chief Executive Officer, Lewis Black, said:
We are fortunate that no one was injured as a result of the fire and that the damage was quickly contained to the electrical supply building. We are working diligently to bring the operations back on-line as quickly as possible through the use of temporary diesel generators until such time that we complete our connection to the state electricity grid, anticipated to be some time in August 2013. We are still in operation with ore being stockpiled until processing resumes, expected by July 1, 2013. There is sufficient power available on site to run all non-mineral processing activities. We have decided to undertake quarterly repair and maintenance activities that were originally scheduled to occur in August 2013 during this stoppage in order to minimize the downtime to our processing operations for the balance of the year.
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