Fluormin PLC Witkop Update (5326O)

TIDMFLOR

RNS Number : 5326O

Fluormin PLC

12 October 2012

Fluormin plc

("Fluormin" or the "Company")

WITKOP MINE

LONDON, UK -- (Marketwire - 12 October 2012)

Fluormin Plc (AIM: FLOR) announces that it is to place the Witkop mine ("the mine") on care and maintenance, following further weakness in the fluorspar market.

Despite an improvement in the Company's operational performance and significant cost reductions, the prevailing price for acid grade fluorspar has fallen below current operating costs. Having met with trade union representatives in South Africa it was concluded to place the mine on care and maintenance with effect from the close of business on 12 October 2012.

In the short term, the Company will focus its activities on expanding its mineral resources and mine planning of higher grade deposits and in particular, the Valley deposit.

Further updates will be released as appropriate.

Mark Bolton, Company CEO, commented "It is with regret that the decision has been made to place the Witkop mine on care and maintenance. However, in the current economic environment, it was concluded following negotiations with the trade unions that the only defensible strategy for the Company was to place the mine on care on maintenance at this time. Recommencement of operations will be contemplated when the fluorspar industry enters into a more favourable price environment. By keeping the mine on care and maintenance the Company is seeking to minimize both the cost and challenges associated with restarting operations at Witkop at such time as the Fluorspar market improves."

About Fluormin Plc

Fluormin is a producer of acid grade fluorspar, an industrial mineral widely used in the chemical and aluminum industries for the making of products such as HFCs (Hydrofluorocarbons used as refrigerant gases like Freon (TM)) and aluminum fluoride.

Contact Information

 
 
Fluormin plc 
 
Mark Bolton, Chief Executive Officer  +44 (0) 20 7034 7150, 
                                       mbolton@fluormin.com 
 
  Westhouse Securities 
 
Martin Davison                        +44 (0) 20 7601 6100, 
                                       martin.davison@westhousesecurities.com

This information is provided by RNS

The company news service from the London Stock Exchange

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