Endeavor Mine will be terminating its contract with one of their contractors, Macmahons, in an effort to reduce costs and sustain the operation.
Endeavor’s general manager Denver D’Angelo announced on Monday night their contract with Macmahon would be terminated which would directly affect 40 Macmahon personnel.
“Macmahon have made assurances to Endeavor that their personnel will be treated with due respect and support and where possible redeployed to alternative operations,” Mr D’Angelo told The Cobar Weekly.
Mr D’Angelo said for the majority of this year Macmahon development contractors had been engaged to carry out decline and lower production levels development.
“Following on from a fall in metal prices over the same period, and forecast surplus capacity in the company’s own workforce and equipment fleet going into 2019, a decision has been made to terminate the contract with Macmahon.
“This is primarily to reduce costs going forward while still supporting the sustainability of the operation,” Mr D’Angelo explained.
He said decline development will continue at Endeavor however it will be carried out by the company’s own people and equipment.
“Advance rates will be accelerated compared to rates experienced year to date as efforts to access the primary ore resource in the deep zinc lode are stepped up.
“The deep zinc lode is the cornerstone production source of our life of mine plan which now takes us out to 2022.”
He said they were also very optimistic beyond 2022 and exploration expenditure in 2019 will be increased five-fold compared to this year.
Mr D’Angelo said despite a “cooling off in terms of prices” the company remains positive with regard to the future prospects for lead and zinc metal prices.
“Reducing costs and accelerating exploration to position us favourably in terms of metal price cycles remains a strategic priority for the business, its workforce and the Cobar community,” Mr D’Angelo said.
