Namibian Minerals has provided an update on the recovery of its damaged NamSSol seabed crawler, previously advised on Jan. 8, 2001.
The company has now confirmed that Namco’s first seabed crawler, NamSSol, was working in approximately four metres of sediment at the base of a slope. During mining, the upper sediments collapsed on to the mining tool. It became apparent that NamSSol was lodged on the seabed. During subsequent recovery the upper chassis of NamSSol parted, leaving the undercarriage on the ocean floor.
After offloading the upper chassis, MV Kovambo returned to the accident site with specialist equipment and diver personnel for recovery of the undercarriage. The unit is buried several metres from its base and initial attempted recovery using 165 tons of lifting force was unsuccessful. A strong northerly current at the ocean floor continues to back fill the mined recess and is further burying the unit.
The company is in discussions with the loss adjusters, representing the insurers, to determine the economic and technical viability of further recovery attempts. The company expects that a replacement undercarriage would take approximately five months to build and commission, costing up to $1.5-million (U.S.). Further inspection of the upper chassis has shown that damage is less severe than originally anticipated and repairs may take up to one month. The disruption to production is therefore expected to be approximately five months.
The company has comprehensive insurance cover for material loss and/or damage to NamSSol and ancilliary equipment, as well as for operating costs and expenses, including loss of profit. While production is disrupted and Namco’s larger seabed crawler the new Nam 2 continues commissioning, the company continues to monitor its cash flow requirements.
The company is continuing discussions with insurers and will issue further updates as developments occur.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
