Terry Halifax
Northern News Services

NNSL (Mar 19/99) - The wheels of justice came to a grinding halt in an Ontario court Thursday morning, all because of a broken-down truck at Royal Oak's Kemess South mine in BC.

The company said the equipment breakdown has led to a temporary shutdown of Kemess South.

On Feb. 15, Royal Oak Mines, which also owns Yellowknife's Giant mine, was granted one month's protection from creditors from the Ontario Supreme Court.

Monday, that date was extended three days to Thursdays when Royal Oak came back to court seeking yet another extension due to equipment failure.

Justice James Farley set aside a ruling until Wednesday, March 24 pending an assessment of the insolvent company's latest problem.

Royal Oak spokesperson Pat Howe said the company needed extra time in light of the equipment breakdown and subsequent temporary shutdown.

"The court was told (Thursday) morning that problems had developed with equipment at the Kemess South mine site," Howe said.

"Late (Wednesday) evening, a problem with the trailing arm in one of the seven trucks developed," he said.

The massive Euclid trucks used to haul ore from the mine to the mill are shut down pending an inspection, Howe said.

"Because of the nature of the problem, the company has decided, in the safety of its employees, they would halt the mining production and assess the damage and make sure the problem doesn't come up in some of the other trucks."

Howe also explained there is a cash-flow impact in terms of lost mining production.

"The hearing was adjourned until the company can fully assess the problem with these Euclid trucks," he added.

Repairs have begun on the trucks and production is expected to resume this weekend, Howe said.

Royal Oak has about $600 million in liabilities.