Gindalbie’s Karara faces delays

Company News

Gindalbie Metals Limited (ASX:GBG) flagship Karara mine is facing delays, as problems with its tailings system continue to hamper the operation. 
 
Karara was originally planned to be producing at a full 8 million tonnes per year by July this year, but problems with the tailings system has caused continuing delays.
 
The magnetite producer, which operates the mine in partnership with Chinese steel giant Ansteel, says the problems are persisting, and will require significant extra work and more funding to fix.
 
The new target is to produce at 75 per cent of capacity by March 2014, with the ramp up to full capacity potentially taking another year.
 
Gindalbie booked a net loss of $144.4 million in fiscal 2013.