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Eqstra seeks compensation for Benga force majeure closure

6th March 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Eqstra on Wednesday said it had agreed to terms and conditions with Rio Tinto regarding compensation for certain costs related to the two-week force majeure closure of the Benga project.

Eqstra said it was of the view that the flood damage to the Sena railway line did not constitute a force majeure event in terms of its opencast mining contract with Rio Tinto.

On February 20, Rio Tinto informed Eqstra’s subsidiary, Eqstra Mozambique, which manages the opencast mining at Benga, that it was suspending its contractual obligations as a result of the closure of the Sena railway line, owing to flood damage.

The Sena railway line, which was shut on February 12, reopened on March 4.

Eqstra and Rio Tinto were working on restarting mining operations at Benga “as soon as possible”.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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