• Tuesday 20th September 2022

Chinese Communist Party’s 20th Congress, Cessation of Explosives Production & Delivery Consequential Production Shutdown

Chinese Communist Party’s 20th Congress, Cessation of Explosives Production & Delivery Consequential Production Shutdown

Chinese Communist Party’s 20th Congress

Cessation of Explosives Production & Delivery

Consequential Production Shutdown

 20th September 2022

 

Griffin Mining Limited (“Griffin” or the “Company”) announces, following the press release of the Chinese Politburo on the 30thAugust 2022 that the Plenary Session of the Communist Party Central Committee will begin on the 9th October 2022, followed by the Chinese Communist Party’s 20th Party Congress on the 16th October 2022, that the Ministry of Public Security has commenced the implementation of severe security measures to ensure the safety of those proceedings, including restrictions on the manufacture and supply of explosives in the 4 major Municipalities surrounding the Beijing area, being Zhangjiakou, Cheng De, Tian Jin and Boa Ding.

Consequently, as the Caijiaying Mining is located in the Municipality of Zhangjiakou, explosives can no longer be acquired or delivered to the Caijiaying Mine. The current inventory of explosives has been exhausted, mining and haulage has decreased and processing and milling is expected to cease on Thursday, 22nd September 2022. It is expected that full operations will recommence at the Caijiaying Mine on Tuesday 1st November.

A plenum of the Chinese Communist Party is normally held in October of every year and, as such, the Company plans and budgets for normal disruption to October production. However, this extended period of unavailability of explosives will inevitably have a significant impact on September and October results. Nevertheless, the Caijiaying Mine has increased production over the past quarter at accelerated rates to record levels unseen in the history of the Caijiaying Mine which may offset any prolonged risk to production due to the Congress.

Additional measures in mine planning and resources have been taken to ensure that the record levels of production return quickly after the disruption has concluded with monthly production rates in the approximately 1.5 million tonne range, on an annualised basis, upon resumption.

Chairman Mladen Ninkov commented, “It is an unfortunate consequence of the importance of this year’s Communist Party’s Congress that such strict security measures have been mandated by the Beijing Ministry of Public Security. Nevertheless, the extraordinary efforts of all concerned in reaching a 1.5 million tonne throughput recently, on an annualised basis, from just Zone III, will ensure that the production and financial impact to Griffin will be minimized to the greatest extent possible.”

 

  About Griffin Mining Limited 

 Griffin Mining Limited’s shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM). Griffin Mining Limited owns and operates through its 88.8% owned Joint Venture in China  the Caijiaying Zinc Gold Mine, a profitable mine producing zinc, gold, silver, and lead metals in concentrates. For more information, please visit the Company’s website giffinmining.com.

 

Further information

Griffin Mining Limited                            Telephone: +44(0)20 7629 7772

   Mladen Ninkov – Chairman

   Roger Goodwin – Finance Director

Panmure Gordon (UK) Limited                           Telephone: +44 (0)20 7886 2500

   John Prior

  Douglas McLeod

  Alisa MacMaster

Berenberg                               Telephone: +44(0)20 3207 7800

  Matthew Armitt

  Jennifer Wyllie

  Deltir Elezi

Blytheweigh                            Telephone: +44(0)20 7138 3205

  Tim Blythe

Swiss Resource Capital AG                          Telephone: +41(0)71 354 850

   Jochen Staiger