UPDATE 1-Baja Mining delays construction at Boleo project

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Oct 29 (Reuters) - Baja Mining Corp (BAJ.TO), a Canadian mining company, said it delayed construction activities at the Boleo Project, Mexico, citing the ongoing financial turmoil.

However, ongoing baselining and engineering activities at Boleo will continue, as will completion of the Boleo construction camp and certain other on-site infrastructure activities, the company said.

Baja Mining said it will continue to work with HVB, the Export Import Bank of Korea and its other financing partners with a view to completing the arrangement and syndication of credit facilities in 2009.

The company cited the current financial crisis on short term metal prices and hedging prices, coupled with an effective shutdown of the global bank syndication and equity markets as reasons for the delay.

Till the company reviews its outstanding commitments with suppliers, it will be premature to determine the impact these delays will have on the start-up date of the mine, it said.

Shares of the company were trading down 7 Canadian cents at $0.21 Wednesday on the Toronto Stock Exchange. (Reporting by Anurag Kotoky in Bangalore; Editing by Jarshad Kakkrakandy)