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Nevsun says power issues cause temporary interruption of concentrate production

Nevsun Resources (TSE:NSU) (NYSE MKT:NSU) said it has experienced a temporary halt in concentrate production at its Bisha mine in Eritrea following power supply issues at its third party plant. 

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Nevsun Resources (TSE:NSU) (NYSE MKT:NSU) said it has experienced a temporary halt in concentrate production at its Bisha mine in Eritrea following power supply issues at its third party plant. 

The company emphasized that it has already hit its annual production guidance and the plant interruption does not have a negative impact on its 2014 financial results as it plans to draw down and sell from stockpiled inventories. 

It said that mining operations continue at full capacity, and that the mine is trucking and exporting stockpiled concentrates.

The temporary interruption in concentrate production is a result of Bisha's power supplier, Aggreko Power Systems, being unable to reliably restart the power facility. Aggreko recently replaced nine of the 27 generators at the plant as part of schedule maintenance, with the interruption initially planned as short-term. 

Nevsun said Aggreko has mobilized appropriate resources and technical personnel to the Bisha site to correct the problem in a "timely manner". The company will provide an update on when the plant is expected back online, it added.

Nevsun Resources was the subject of takeover speculation last month, with a rumoured US$1 billion acquisition of the company by mining fund QKR Corp.

Also in November, it was revealed Nevsun is facing a lawsuit filed in a B.C. court by three individuals, who are claiming they were subject to human rights abuses when working with a local sub-contractor at the company's 60 percent owned Bisha mine in Eritrea.

In a statement, Nevsun denied the allegations, which have not been proven in court, and said it will "vigourously defend" itself against the claim.

The Bisha mine began commerical copper concentrate production last December, and ranks as one of the highest grade open pit copper mines in the world.

Quick facts: Nevsun Resources

Price: - CAD

TSX:NSU
Market: TSX
Market Cap: -
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