Lucapa cuts costs and looks at restarting ops

PERTH (miningweekly.com) – Diamond miner Lucapa on Thursday said that it was reviewing various funding scenarios and financing restructuring possibilities amid the global Covid-19 pandemic.

A care-and-maintenance and security programme is being implemented at its Mothae operation, in Lesotho, after the South African government effected a nation-wide lockdown which impacted on the flow of essential mining supplies and services across the Lesotho border.

Activities at Lulo were halted in April, following the declaration of a National State of Emergency by the Angolan government, however, Lucapa said on Thursday that it was working with the government to restart normal mining activities at the project.

Lucapa on Thursday noted that significant overhead reductions had been achieved at the company’s corporate head office, in Perth, with staff and contractors taking a voluntary 60% cut to emoluments or fees, starting from April 1, while also using accrued leave where possible.

Two of the company’s nonexecutive directors have also agreed to waive their fees until further notice.