All other aspects of the mine are functioning properly and, when the machine is operating correctly, the mine will be capable of producing coal at economically viable rates.
Nevertheless, the company believes that the mechanical problems associated with the current mining machine cannot be permanently repaired. The down time occasioned by the need to repair the machine has resulted in revenue from current coal production being inadequate to meet operating and overhead costs.
The company has elected to suspend mining operations until such time as it has secured adequate working capital and financing for the acquisition of an alternate continuous mining machine.
