MMG: Solid production for June quarter
MMG Limited (MMG) today announced its second quarter 2018 production result producing 137,398 tonnes of copper and 58,090 tonnes of zinc in the three months to 30 June. This contributed to an overall 3% growth in production for the first six months of 2018*.
Dugald River continued commissioning and ramp-up activities, declaring commercial production in May. Mill throughput exceeded design capacity with 38,648 tonnes of zinc in zinc concentrate produced for the quarter.
“The ramp up of Dugald River and the achievement of commercial production ahead of schedule has been an outstanding achievement and further demonstrates MMG’s ability to deliver world class assets,” CEO Jerry Jiao said.
Las Bambas copper in copper concentrate production was 99,581 tonnes, a 14% improvement on a first quarter impacted by some localised geotechnical instability.
“We expect improved production from Las Bambas in the second half through higher grades, increased milling volumes and strong recoveries,” CEO Jerry Jiao said. “Annual production is forecast to be between 410,000 and 430,000 tonnes of copper.”
MMG’s Kinsevere operation continued to deliver excellent operational performance in the June quarter, producing 20,570 tonnes of copper cathode which contributed to a record production half of 40,556 tonnes.
“Our Kinsevere operation is on track to deliver around 80,000 tonnes in 2018,” Mr Jiao said. “This will be Kinsevere’s fourth consecutive year at these levels – an outstanding achievement that demonstrates MMG’s track record of strong and stable operating performance in the Democratic Republic of the Congo.”
The DRC Government has commenced enforcement of elements of the Mining Code Amending Act and supporting regulations, in particular the increased royalty rates, from mid June 2018.
“MMG remains in active consultation with the DRC Government and industry peers regarding the application of the Mining Code Amending Act and supporting regulations.”
As announced on 21 June 2018, MMG has agreed the sale of its 90% interest in Lane Xang Minerals Limited (LXML), which owns the Sepon mine, to Chifeng Jilong Gold Mining Co Ltd.
“Chifeng are an experienced and highly capable gold miner focussed on extending the life of Sepon through the transition from copper production to primary gold operations,” Mr Jiao said.
Completion of the transaction is expected to be in the second half of 2018.
MMG expects to produce 560,000 to 590,000 tonnes of copper and 190,000 to 220,000 tonnes of zinc in 2018.
*Copper equivalent production compared to the first six months of 2017.