Sumatra Copper & Gold plc announced that it has suspended production and operations at its Tembang gold-silver operation located in southern Sumatra, Indonesia. In May 2018, the company announced it had temporarily suspended open pit operations until the connection of Tembang to the State-owned electricity grid later this year which will result in considerable reductions to power charges (from USD 0.26 /Kwh to approximately USD 0.09 /Kwh) with expected savings in processing costs, underground mining costs and administration. During this intervening period, the Company has operated solely on the production from the Belinau Underground mine. Lower production grades and excessive waste mining in the lower portion of the Belinau Underground mine has resulted in negative cashflow from operations which the Board has determined is not sustainable. The company has suspended all operations and put the mine on Care and Maintenance to minimise losses while a new mine plan based on a lower sustainable cost base can be prepared. Discussions have commenced with the company's lenders and creditors to allow the company to restructure its financial position to enable the mine to remain on Care and Maintenance. Preparation of the new mine plan and financial restructure is expected to take at least two months and will also include implementation of cost-saving initiatives and securing of additional funding.