Alacer Gold Scales Back Operations Amid Australian Mining Downturn

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Researched by Industrial Info Resources Australia (Perth, Australia)--One of the most recent Australian mining companies to announce plans to reduce activity in the coming years is Alacer Gold Corporation (ASX:TSX) (Toronto, Ontario). The company aims to reduce activity over the next 18 months as it moves its Australian operations into a "care and maintenance" status. Alacer officials say they want to concentrate on near-term projects to drive cash generation.

In previous years, Alacer moved to streamline the business and gear it toward a level of efficiency that would help it sustain operations during economically difficult periods. The efficiency initiative was under the effective management of company President and Chief Executive Officer David F. Quinlivan, who soon will be succeeded by Chief Financial Officer Rodney Antal.

During Quinlivan's management, the company saw financial gains through reducing operational activity and strived to optimize operations by integrating a major operational improvement program. Under his management, the company reduced its debt position from the sale of its minority stake of 49% in the Frog's Leg gold project near Kalgoorlie, Western Australia. This was a joint venture held with La Mancha Resources Australia Pty Limited.

The company's move to restructure management and sell off assets follows an announcement of a recent AUD$412 million (US$375 million) writedown on the Australian operations.

The announcement from the company is becoming a common trend, with many other companies currently reducing activity. Mining giant Newcrest Mining Limited (ASX:NCM) recorded a staggering annual net loss of more than AUD$6 billion at the close of the financial year ended June 30.

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