Ivanhoe’s Kipushi zinc mine in the DRC officially reopens
The restart marked exactly a century since the mine first went into production.
A press release issued by Baja Mining today (TSE:BAJ) announced that Louis Dreyfus, one of the mining company’s largest share holders, is suing due to expenditures at Baja’s Boleo project in Mexico.
Louis Dreyfus is seeking an independent investigation to the “cost overruns” of the Boleo project and has also demanded for the removal of “officers and directors which share responsibility for Baja’s alleged failure to make timely disclosure of cost overruns.”
Baja says it “intends to defend this action vigorously.”
Louis Dreyfus holds roughly 10% of Baja Mining and has sought arbitration through the London court system.
While shares of Baja climbed 20% to settle at $0.18, the stock is still far away from its mid-April holding point of $0.97.
The downward spiraling stock price came after Baja admitted that the Boleo project, originally projected at $897 million, would exceed $1.1 billion.
In late May, as a last ditch attempt to save the Boleo project, Baja under went massive job cuts.
Read more on Baja’s move that cut 40% of its staff >>
4 Comments
shareholder issues
Louis Dreyfus sued due to expenditure reasons on Baja boleo’s project. He sued through London court system. This problem was accured due to inexperience of high chair management.
Mike Hall
Get rid of the Executives and go back to basics using experienced mining personnel from the workface,It is because your executives having no workface experience,causing companies these massisve cost overruns world wide.
Question? Why is it that the increase in costs are linked to the increase of the commodity price? this does not make sense.
Fire their backsides as they are only looking after themselves with their so called impractical management styles,”Away from the Workforce/Workface” and no “hands on” management
DaRue
Reading Baja’s Q1 report, the overrun is $246m, not the original projection.
josh zapf
Good eye DaRue.
I’ve made the correction.