Hebei Province-based Chinese miner HBIS Resources Co., Ltd. has announced that its net loss is expected to amount to RMB 115-145 million ($16.9-21.3 million) in the first six months this year, compared to a net profit of RMB 262 million in the same period last year.
The company stated that, due to persistent heavy rainfall and regional floods, its subsidiary Palabora Copper (Pty) Ltd., located in South Africa’s Limpopo Province, suffered severe damage, which resulted in the suspension of copper production and sales, leading to a decrease in its operating revenue in the first six months. Meanwhile, there have been huge expenditures for the emergency response at the plant site, for underground dewatering and facility restoration. In the given period, these fixed operating costs contributed to the company’s loss.
