ASX - MGO Update Final


6 March 2013
Companies Announcement Office
Australian Securities Exchange Limited

BIRLA MT GORDON TO BE PLACED UNDER CARE AND MAINTENANCE

Aditya Birla Minerals Limited (ASX Code: ABY) advises that its Mt Gordon Operations are to be placed under Care and Maintenance by the end of April 2013.
When a decision was taken to re-start the Mt Gordon operations in January 2011, the LME copper price was prevailing in the range of US$9600 /MT, which has now fallen to around US$7700 /MT. Furthermore, there are uncertainties in regards to economic conditions in Europe and a slow down of the Chinese housing market. The production performance at the Mt Gordon operations has been lower than expected for various reasons. At current production rates, the unit operating cost per pound of copper produced at the Mt Gordon operations has become unacceptably high, which is adversely impacting the profitability of the operations and the Company.
As per the scoping study results announced to the ASX on 20th February 2013, there is an opportunity to transform Mt Gordon into a high-production operation with lower per unit operating cost by converting the present open stope trucking haulage method into a sub level caving hoist shaft haulage method.
As a strategic review of the Mt Gordon operations is presently underway, the Board of Directors of the Company has decided not to deplete the existing high-grade resources at the currently high unit cost. After examining various options, the Board of Directors has decided to place the Mt Gordon operations under Care & Maintenance by the end of April 2013, which is expected to result in annualized savings of approximately AUD12-15 million from existing Mt Gordon operations.
The company continues to review and assess all aspects of its operations and will keep the market informed as and when necessary.
For further information, please contact:

Aditya Birla Minerals Limited

Sunil Kulwal - Managing Director Shanti Dugar - Chief Financial Officer Peter Torre - Company Secretary
Telephone +61 8 9366 8800
Facsimile: +61 8 9366 8805
Email: investorrelations@adityabirla.com.au

Aditya Birla Minerals Limited

ABN: 37 103 515 037

Level 3, Septimus Roe Square, 256 Adelaide Terrace, Perth WA 6000

P O Box 3074, Adelaide Terrace, Perth WA 6832 AUSTRALIA Telephone: +61 8 9366-8800 Fax: +61 8 9366-8805

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