Centerra falls after explosion at Pennsylvania metallurgical facility

[Ben Graham]

Centerra Gold (TSX: CG; NYSE: CGAU) stock plunged after the miner said it suspended operations at its Langeloth metallurgical facility in Pennsylvania due to an explosion.

Shares of Centerra fell 8% to C$24.20 Friday morning in Toronto, cutting the company’s market value to about C$4.8 billion ($3.6 billion).

Thursday at about 6:15 p.m. Eastern time, an uncontrolled mixture of chemicals at Langeloth triggered an uncontained chemical reaction adjacent to the acid plant, Centerra said Friday in a statement. No fatalities were reported, but two contractors were hospitalized with injuries and two employees were taken to hospital for precautionary reasons.

There is no indication of a significant environmental release, Centerra also said, adding that regulatory agencies and authorities have been notified. Centerra is assessing Langeloth’s estimated downtime and will provide an update when more information is available.

Langeloth is Centerra’s downstream metallurgical plant for molybdenum concentrate processing. It’s due to process the concentrate that will produced at the Thompson Creek mine in Idaho once production starts next year.

Centerra acquired Langeloth as part of its $1.1 billion acquisition of Thompson Creek Metals in 2016.