Lower levels of production at Frontier Mining’s Benkala Copper Project in Kazakhstan in the latter part of 2014 have impacted the company with sales of copper cathode produced in 2014 being insufficient to cover production costs. There were 1276 tonnes of copper cathode in the 12 months ending December 31.
Owing to the onset of winter, Frontier closed the Benkala operation on January 14. This will allow the UK-based, cash constrained company to conserve capital. It will also enable it to continue discussions with various parties to enter into a partnership agreement for the project.
During 2015, Frontier plans to restructure its existing debt facilities and secure a new investor to enable the company to increase copper cathode production levels at Benkala.