South African fluorspar miner Sallies incurred a loss of R8.9 million from mining activities in the six months to December 2009. This compares to a profit of R42 million for the same period last year.
Turnover decreased from R149.6 million to R44.6 million for the six months to December 2009.
The company said that demand for acid grade fluorspar collapsed in the early part of last year and despite concerted efforts by management and its marketing agent, future orders have not been secured.
"Consequently, as announced in June 2009, the company decided to mothball its Witkop Fluorspar Mine ("Witkop'). Both of the company's mines are now on care and maintenance, Buffalo Fluorspar Mine ("Buffalo") having been mothballed in October 2008," Sallies said.
Enough fluorspar had been produced at Witkop to honour export sale contracts for the six months ended 31 December 2009 and the final export sale contract was fulfilled last month.
Key staff have been retained at Witkop and the production facilities are being maintained in anticipation of recommissioning, the company added.
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