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(Sharecast News) - Griffin Mining said Thursday that local authorities in China have instructed it to temporarily cut operational throughput for four months as part of a wider safety initiative affecting most mining operations in the country.
The AIM-traded firm said it expected to reduce throughput by around 110,000 tonnes between September and December.
It added that cooperating with the initiative was essential to securing permits for the commissioning of Zone II and to continue production from Zone III at its Caijiaying mine.
Despite the cutback, Griffin said recent rises in gold and zinc prices meant it still expected full-year financial results to be in line with management forecasts.
"This temporary reduction in throughput is not expected to materially affect full year financial results, particularly if the current strength in commodity prices persists, but creates the necessary environment with the Chinese regulatory authorities to engender the appropriate respect as good operators in China to obtain the necessary approvals to take the Caijiaying Mine to the next level," said chairman Mladen Ninkov.
At 1306 BST, shares in Griffin Mining were down 0.53% at 186p.
Reporting by Josh White for Sharecast.com.
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