Mining company faces rising costs
Posted
Financial uncertainty in the global credit market has sparked a big increase in capital costs for Moly Mines' Spinifex Ridge Project in the Pilbara.
Moly's managing director, Derek Fisher, says costs have risen 17 per cent to $1.26 billion after an infrastructure company could not meet the financial hurdles imposed by its lenders.
That company had been commissioned to build an on site power station.
Last week, Moly announced it had reached an agreement for oil and gas producer, Santos, to supply gas to Spinifex Ridge.
Moly expects to commence production in early 2010.
