Renison operations suspended

RNS Number:5473L
Murchison United NL
27 May 2003


ASX, AIM and Media Release

27 May 2003


Renison Bell operations suspended pending recapitalisation

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Murchison United NL ("Murchison" or "the Company") (ASX: MUR, AIM: MUU) today
announced that it had suspended mining and treatment operations at its Renison
Bell tin mine. The suspension is expected to last for 6-8 weeks during which
time essential maintenance will be undertaken and arrangements to recapitalise
the operation finalised.

The suspension follows a recent geotechnical failure in the Huon open stoping
area which resulted in the tragic death of a Barminco employee. Whilst the cause
of the failure is still under investigation, the Company's geotechnical
consultants, Australian Mining Consultants, have recommended that the scheduled
filling of the Huon stoping voids be brought forward and extraction of the high
grade Huon orebody be deferred until filling has been completed.

A substantial tonnage of alternative ore is available for extraction, however
this lower grade material is marginal at current tin prices. It is therefore
planned to undertake essential maintenance during the shutdown and to
recapitalise the operation by developing the South Renison decline to access the
high grade Federal orebodies.

The Renison Bell operation has been in near continuous production for over 40
years and has recently recovered from the collapse in tin prices that occurred
in 2001. During the March quarter the operation recorded an EBIT of A$772,000
and the currency hedging positions with Westpac were closed out. Over the past 5
years the Company has retired over A$42 million of bank debt and is now bank
debt free.

The Company continues to strive to maintain a safe working environment through
its RENSAFE enterprise wide safety system. Prior to the recent accident, the
operation had recorded over 1 year without a lost time injury, resulting in the
all time lost time injury frequency rate (LTIFR) falling to 8.12 per million
manhours worked.

Managing Director Paul Atherley commented: "Having re-established the
profitability of Renison Bell during the March quarter the suspension of
operations is obviously very frustrating - particularly given that the high
grade ore sources had been fully developed and were ready for extraction.

The suspension will however, allow us to undertake essential maintenance and to
focus on the longer term recapitalisation of the operation. At the same time we
are making good progress in our review of the possible co-treatment of nearby
base metal resources and shall be factoring this into the long term plan."


For further information please contact:

Paul Atherley, Managing Director

Murchison United NL
Telephone:     [phone]
Facsimile:     [phone]
Email:         [e-mail]


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