Safety audit failure closes CuDeco’s flagship Rocklands copper processing plant

THE hits keep coming at trouble-plagued copper miner CuDeco.

The first truckload of native copper product leaves CuDeco's Rocklands operation near Cloncurry. Rocklands has been suspended after failing a safety audit.

THE hits keep coming at trouble-plagued copper miner CuDeco.

CuDeco has been ordered to shut down its Rocklands mine after failing a safety audit.

Shares at the beleaguered company, which peaked at 75¢ this year, closed at 33¢ yesterday.

CuDeco said it had been issued with a directive from the Department of Natural Resources and Mines (DNRM) to suspend operations at Rocklands, pending submission of an updated safety and health management system.

The directive followed a desktop audit on CuDeco’s Safety and Health Management system which DNRM found “did not support current activities, personnel and processes associated with the site”.

After a risk assessment, health and safety inspectors also found that the site had not “sufficiently nor comprehensively” reviewed the risks associated with its activities.

A sitewide risk assessment also was out of date.

The company was unable to say how long any review and fresh health and safety update will take or how long the plant will be closed.

It also did not reveal what will happen to mine employees.

Rocklands employs about 200 workers, all locals who are not fly-in, fly-out staff.

The shutdown is the latest in a string of blows to hit CuDeco.

In the face of much scepticism, CuDeco in October opened its Rocklands project to much fanfare, flying a planeload of guests to Cloncurry.

At the time, then-managing director Dr Dianmin Chen said: “We have come a long way from exploration and construction’’.

It began exporting to China from the Townsville port in August.

Since then, CuDeco has had a revolving door at the top.

Dr Chen has gone, leaving the company without explanation after less than a year in the job.

Rocklands operations manager Mark Roberts also resigned.

Former managing director Peter Hutchison has stepped into the role of interim chairman, taking over from Dr Noel White.

CuDeco also revealed it had finance headaches and was working to pay off its debt to a Chinese bank by March.

After a decade, CuDeco, which boasts a large number of Gold Coasters on its share register, had appeared to have ended its woes after sourcing funding for Rocklands from Chinese investors.

It also appeared to have ended the problems left after the ousting of its colourful founder, Main Beach resident, Wayne McCrae.

Yesterday, CuDeco said it will continue loading existing concentrate and operate the plant and equipment to keep the site safe.

Scheduled maintenance of the crushing plant will continue.

CuDeco also will continue to mobilise its mining fleet during the suspension period.

Mr Hutchison said: “The health and safety of our workforce is our number one priority. We will endeavour to address this issue as quickly as possible.”