The company decided to suspend mining operations following receipt of a safety-inspection report from the inspection team based at the open-pit mining area.

Based on a preliminary investigation, it appears that the structural integrity of the mining-waste containment dam may have been compromised because of massive rainfall and flooding in the region during July and August 2011.

The company said that some progressing leaks were found during a safety check on the containment dam, and these leaks may have been caused by prolonged periods of excessive rainfall during this period that resulted in high water levels at the mining waste-containment reservoir.