NEW YORK Baja Mining
Corp. has reported a $151.8-million loss in the third quarter,
down from net income of $78.3 million in the same period last
year, as struggles continue at its flagship Boleo Mine, which
halted construction after a worker died at the facility
Construction at Vancouver,
British Columbia-based Bajas flagship
copper-cobalt-zinc-manganese minewhich faces more than
$440 million in overrun costsremained suspended as of
The mine, in Baja California
Sur, Mexico, was originally tagged with a construction cost of
$1.17 billion, but that amount was reassessed at $1.67 billion
in June, according to the company.
Bajas ownership stake in
subsidiary Minera y Metalurgica del Boleo SA de CV (MMB) was
reduced to 49 percent in August, when the co-owner of the mine,
a Korean consortium, supplied $90 million in funding to bail
out the project (amm.com, Oct. 25).
If Baja makes no contribution to
the next stage of funding, its interest in the mine will be
reduced to 10 percent, the company said Thursday.
Baja attributed its
third-quarter losses to the transition of shares to the
consortium, resulting in a loss of $115.8 million.
The company secured a further
extension of a standstill agreement from lenders as well as an
additional $84 million from the consortium earlier this month,
enabling it to continue construction of the mine until Nov. 20
(amm.com, Nov. 7).
"Once the companys
interest is below 20 percent, it may be considered that the
company does not exercise significant influence over MMB," the
The Boleo Mine has a measured
and indicated ore resource of 265 million tonnes and an
inferred resource of 160 million tonnes, according to
Earlier this week, Baja
appointed interim chief executive officer and chairman Thomas
Ogryzlo as interim chief financial officer.
follows the transfer of former Baja chief financial officer
Rowland Wallenius to MMB. Bajas board is now considering
recruiting a new permanent chief financial officer.
"Baja still owns 49 percent of
the Boleo project, and it will keep its position until the
Korean consortium will commit to State Two funding," she