The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region
Issue link: https://asiaminer.epubxp.com/i/830355
Volume 14 • Issue 2 | 2017 | ASIA Miner | 35 Laos PRODUCTION of copper cathode at MMG Limited's Sepon Copper Project in Laos continues to encourage the company as the opera- tion is in transition to lower grade and more complex ores. Production during the December quarter was 10% higher than the corresponding period of 2016 and 12% higher than the previous quarter. MMG produced 22,527 tonnes of copper cathode during the three months, which was the strongest 2017 quarter from the mine. Annual Sepon production of 78,492 tonnes in 2016 was 12% lower than the previous year. This was lower than the guidance of 80,000-85,000 tonnes with the C1 cost of US$1.32 per pound being above guidance of US$1.10-$1.25. This contributed to the company's overall 2016 copper produc- tion of 502,510 tonnes against the guidance range of 415,000- 477,000 tonnes. The Las Bambas mine in South America was the major driver of this growth with 330,227 tonnes of copper in concentrate during the year, which was above the guidance range of 250,000-300,000 tonnes. MMG expects to produce 420,000-460,000 tonnes from Las Bambas in 2017. The lower 2016 Sepon production reflects lower grades, with ore milled grades of 3.7% compared to 4.9% in 2015. Copper ore mined in 2016 was 61% higher than 2015. Mining is now concen- trated primarily in the western areas of the lease, 15km to 20km away from the main processing facility. Copper ore milled was 20% higher in 2016 than 2015 and strong operational improvements have been achieved to maximise plant throughput, and therefore copper production, from the lower grade, more complex ores. Increasing strip ratios, lower grades and higher geological com- plexities associated with deposits in the western areas will continue having an impact. Production is also now more reliant on the pro- cessing of long-term low grade stockpiles. MMG expects to produce 65,000-75,000 tonnes of copper cathode in 2017. C1 costs are expected to be within the range of US$1.25-US$1.40 per pound for 2017 with continued operating efficiencies and efforts to restructure the cost base expected to partially offset the impact of mining and processing lower grade and more complex ores. Sepon is an open-pit copper mine in the Savannakhet Province of southern Laos. The registered name of the operating company is Lane Xang Minerals Ltd, of which MMG owns 90% and the Lao Government 10%. PANAUST Limited is seeking to build on the success of its Phu Kham and Ban Houayxai operations in Laos by exploring other parts of its 2600sqkm contract area. Both operations recorded strong production results in 2016 with Phu Kham also reporting that it has achieved more than 21 months of operations without a lost time injury. An airborne electromagnetic survey of the contract area has iden- tified a number of geophysical anomalies in the northwest-south- east trending volcanics between the Phu Kham and Ban Houayxai operations. PanAust intends to investigate these anomalies with further explo- ration this year. Superior safety and production performances in 2016 coupled with improved cost outcomes saw the company deliver its stron- gest ever annual production and operating cost results. Managing director Dr Fred Hess said, "2016 was a year of mile- stones and excellent results for PanAust. Our ability to deliver exceptional safety, production and cost outcomes year-on-year against a backdrop of ongoing commodity price volatility highlights our resolve to see our business excel." Phu Kham recorded its best ever annual production of copper in concentrate of 89,187 tonnes, up from 78,449 tonnes in 2015; open-pit material mined of 57 million tonnes, up from 55.8 million in 2015; and, copper recovery rate of 79.9%, up from 77.4%. There were also 89,657 ounces of gold in concentrate produced and 535,198 ounces of silver in concentrate. The Ban Houayxai operation set annual records for gold produc- tion of 127,825 ounces, up from 119,152 in 2015, and open-pit material mined of 13.2 million tonnes, up from 12.5 million. The C1 cost for gold produced of US$455 per ounce shattered projected costs for the year of US$659. There were also more than 1.101 million ounces of silver produced. "Commendably, our operations achieved these records with- out the aid of additional capital investment, but rather, through the improved performance and productivity of our employees and increased reliability of our existing equipment," Fred Hess explained. In December, PanAust also expanded its exploration activities in Myanmar through a farm-in agreement with Metro Mining for the Mahar San Exploration Project in Sagaing region. Sepon copper production encourages MMG Lao Deputy Prime Minister, H.E Mr Sonexay Siphandone met with trade, mining, business and government representatives during a function in Mel- bourne recently hosted by ANZ Bank. PanAust seeks further Laos deposits