SouthernEra Suspends Mining Operations at Klipspringer

    SouthernEra Suspends Mining Operations at the Klipspringer Joint

    Venture

 

    Shares Issued and Outstanding: 74,166,193

    TSX: SUF

    AIM: SRE

 

    TORONTO, Dec. 31 /CNW/ - SouthernEra Resources Limited announced today

that mining operations at the Klipspringer Joint Venture have been suspended.

This decision, taken in conjunction with the Company's joint venture partners,

has become necessary primarily as a consequence of the strength of the South

African Rand. The Joint Venture's operating costs are in Rand, while diamond

revenue is denominated in US Dollars. Over the course of the past year the

Rand has appreciated significantly relative to the US Dollar resulting in the

operation being unprofitable.

    In agreement with the two representative unions, non-essential employees

have been retrenched. Stockpiled ore will continue to be treated during

January 2004 after which the mine will then be placed on care-and-maintenance.

    SouthernEra Resources is an independent producer of platinum group metals

and diamonds. The company also has an extensive PGM, gold and diamond

exploration program. The common shares are listed on the Toronto Stock

Exchange and the London Stock Exchange's AIM market.

 

        For further information: PLEASE CONTACT: SouthernEra Resources Limited,

Dr. Sally Eyre, Vice President Corporate Affairs, Telephone: [phone],  

Fax: [phone], E-mail: inbox(at)southernera.com, www.southernera.com

    (SUF. SRE)

 



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