HeSteel Resources: South African Subsidiary Underground Copper Mining Phase One Resumed Production

China Metallurgical News, March 17 — Hebei Iron & Steel Resources (000923) announced on March 17 that its subsidiary, Palabora Copper, located in Limpopo Province and neighboring Pumalanga Province in South Africa, has experienced the most severe flooding disaster since 2000. Heavy rains caused surface runoff and water inflow into the company’s mines, leading to water accumulation in parts of the first and second copper shafts, and flooding of some key facilities (no casualties reported). As of now, drainage operations in the first copper shaft have been completed, and production has resumed. Due to water damage underground, to ensure safety, the current operation is running at low capacity, with output gradually increasing based on on-site safety conditions. The second copper shaft, located at a deeper level, is experiencing slower drainage progress and is still undergoing drainage work, expected to be completed in early April. As of this announcement, the company has approximately 100 million tons of magnetite on surface stockpiles. Currently, surface magnetite production and transportation are normal, with an estimated annual sales volume of 10 million tons. The incident has disrupted underground mining operations, which is expected to negatively impact the company’s annual copper product production and sales plan. The specific extent of the impact will be assessed based on subsequent recovery and resumption of operations.