the fat lady hasn't sung yet

Windimurra vanadium mine winds down

February 19, 2009

Article from: Australian Associated Press

SEVERAL hundred jobs at the Windimurra vanadium mine development in Western Australia's Mid West are being wound down after the appointment of administrators and receivers.

The mine was set to start producing ferrovanadium this year but announced at the end of last year that it needed an extra $81 million for construction labour and fixed costs.

"There are more than 400 contractors on-site, and they're being wound down and demobilised from the site because construction needs to be put on hold while this assessment occurs," administrator Darren Weaver of Ferrier Hodgson said yesterday.

"Ultimately the decision is in the hands of the receiver."

The receiver said there was Chinese interest in the company and the partly finished mine.

Receiver Brian McMaster of accountant Korda Mentha told Dow Jones Newswires a "number of parties" had contacted the company and asked to be considered in any recapitalisation or sale of Windimurra.

Mr McMaster said the mine would be placed in care and maintenance while contractors were redeployed. The future of the company's 50 workers was uncertain.

AAP