VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2011) - Quadra FNX Mining Ltd. ("Quadra FNX" or the "Company") (News - Market indication) announces that Marineer Zona Franca S.A. ("Marineer"), the local mining contractor at the Franke Mine ("Franke") in Chile, has shut down all its mining equipment at the site due to financial difficulties. Quadra FNX has made the decision to terminate the contract with Marineer and take over the mining operations at Franke. The Company is finalizing the terms of the takeover of the existing mining fleet and is also progressing discussions with Marineer's key sub-contractors.
Quadra FNX currently has approximately two months of ore feed stockpiled at the Franke site and does not expect the transition to owner mining to have any material impact on production. The transition is expected to result in an improvement in operating efficiencies, and in turn is expected to have a positive impact on the operation's cost structure. The Franke Mine is expected to contribute between 35-45 million pounds of copper in 2011.
Negotiations with the newly formed Union at Franke are also ongoing. The Company has presented the Union with a final offer, and a vote is expected during the week of February 21st
About Quadra FNX Mining Ltd.
Quadra FNX Mining Ltd. is a leading mid-tier copper mining company with corporate offices in Vancouver, B.C. and Toronto, Ontario. Quadra FNX produces copper and platinum group metals from its operating mines: Robinson in Nevada, Carlota in Arizona, Franke in northern Chile, and McCreedy West, Levack, which includes Morrison, and Podolsky in Sudbury, Ontario. The Company possesses several advanced development projects, including the Sierra Gorda copper-molybdenum project in Chile, the Malmbjerg molybdenum development project in Greenland and the Victoria project, an advanced exploration project in Sudbury. Quadra FNX employs approximately 1,650 people in North and South America.
This Press Release contains "forward-looking information" that is based on Quadra FNX's expectations, estimates and projections as of the dates as of which those statements were made. This forward-looking information includes, among other things, statements with respect to future production at the Company's operating mines and other operations. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should", "scheduled", "will", "plan", "would" and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra FNX's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information and is developed based on assumptions about such risks, uncertainties and other factors, including but not limited to
- uncertainties relating to availability of updated equipment, the leaching rate and the transition to owner mining at Franke;
- uncertainties related to actual capital costs, operating costs and expenditures, production schedules and economic returns from the Company's mining projects;
- inherent hazards and risks associated with mining operations;
- inherent uncertainties associated with mineral exploration;
- risks associated with Quadra FNX being subject to government regulation, including changes in regulation;
- risks associated with Quadra FNX being subject to extensive environmental laws and regulations, including change in regulation;
- risks associated with Quadra's need for governmental license and permits;
- risk associated with labour contract negotiations at Franke
- political and country risk;
- risk of water shortages and
- risk of water shortages and risks associated with competition for water;
- Quadra's need to attract and retain qualified personnel;
- increases in off-site transportation and concentrate processing costs;
- risks related to the stability of mine pit walls;
- risks related to the need for reclamation activities on Quadra FNX's properties, including the nature of reclamation required and uncertainty of costs estimates related thereto;
- uncertainties related to the construction quality and structural design at Franke; and
- risks associated with fluctuations in costs of operating supplies and other inputs.
A discussion of these and other factors that may affect Quadra FNX's actual results, performance, achievements or financial position is contained in the filings by Quadra FNX with the Canadian provincial securities regulatory authorities, including Quadra FNX's Annual Information Form and the Annual Information Form filed by FNX prior to the merger between Quadra Mining Ltd. and FNX Mining Company Inc. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of Quadra FNX's mining operations, no material adverse change in the market price of commodities, that the mining operations will operate in accordance with Quadra FNX's public statements and achieve its stated production outcomes, and such other assumptions and factors as set out herein. Although Quadra FNX has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Quadra FNX disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.
