PROGRESS REPORT ON CAIJIAYING

RNS Number : 4490V

Griffin Mining Ld

02 November 2010

 

GRIFFIN MINING LIMITED

60 St James's Street, London SW1A 1LE, United Kingdom

Telephone: + 44 (0)20 7629 7772  Facsimile:  + 44 (0)20 7629 7773

E mail: [e-mail]

Progress Report on Caijiaying Operations

2nd November 2010.

Further to the announcements made on the 9^th and 16^th of August, 28^th September and on the 25^th October, Griffin Mining Limited's (the "Company" or "Griffin") subsidiary, Hebei Hua Ao Mining Development Company Limited (the "Subsidiary"), has received the report from the Chinese authorities on the two contractor fatalities at the Caijiaying Mine.  Whilst the report attributes no direct blame on Griffin or its Subsidiary, the Chinese authorities have imposed various fines amounting to Rmb670,000 (£62,000) on the Subsidiary and the report makes a number of recommendations for improving safety at the mine. The report also holds numerous personnel at fault and imposes minor fines and/or other penalties upon them.  The Subsidiary has three days to appeal the findings of the report should it deem appropriate to do so.

The suspension of mining activities at Caijiaying will be lifted once the recommendations contained in the report have been fully implemented.  It is anticipated that the safety recommendations will take a number of weeks to complete once electrical power has been restored to the Caijiaying mine.  In this regard Griffin has not received any further information as to when the electrical power will be restored in full.  In addition, production from the Caijiaying Mine will be limited to 200,000 tonnes of ore per annum throughput, which is in the process of being increased to 750,000 tonnes per annum, until certain upgrade design features have been approved by the Chinese authorities.  The Subsidiary has already engaged a number of Chinese firms to approve the constructed mine upgrade designs.

Further information

Griffin Mining Limited:

Mladen Ninkov                    (Chairman)

Roger Goodwin                    (Finance Director)                                                                [phone]

Investec Investment Banking:

Stephen Cooper                                                                                                                   [phone]

Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM).

The Company's news releases are available on the Company's web site: www.griffinmining.com

 

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