Contractor pulls plug on troubled African Copper

Tuesday, November 03, 2015

South African mining contractor, Diesel Power Mining Services has suspended all works at African Copper’s Mowana mine over non-payment of financial dues. African Copper engaged Diesel last year in a $113 million (P1.2 billion) hard-rock opencast mining contract spanning over 52 months.

In a response to Mmegi Business enquiries, Diesel Power’s parent company, Buildmax, said it has enforced its contractual right to suspend contract mining services as a result of their client’s inability to meet payment obligations.

“We have suspended operations due to non-payment but we are in discussions and taking legal advice for the appropriate action to mitigate losses.

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