PanAust to boost mine production in Laos
PanAust to boost mine production in Laos
PanAust Limited (PanAust) has announced a revised life of mine plan for its Phu Kham copper/gold operation in Laos.
Annual copper in concentrate production is now forecast to increase year-on-year to about 90,000 tonnes by 2018, the company announced on Wednesday.
Production guidance for 2013 remains unchanged at between 62,000 tonnes and 65,000 tonnes of copper in concentrate.
A comprehensive review of the life of mine schedule was required following the revision of the 2013 and 2014 mine plan earlier this year to prioritise mining on the interim west wall of the Phu Kham open pit.
The outlook to 2015 remains unchanged from that announced in February 2013, with copper in concentrate production of between 65,000 tonnes and 70,000 tonnes in 2014 as the operation benefits from a full year of the increased recovery project.
Production is expected to rise to more than 70,000 tonnes in 2015 as scheduled head grades progressively increase.
Over the period 2016 to 2019, increasing head grades will cause copper in concentrate production to rise to peak levels of around 90,000 tonnes per year in 2018 and 2019, according to the company.
Gold gr ades are forecast to be variable, giving production in the range of 60,000oz to 80,000oz in concentrate through to the end of the decade.
PanAust Managing Director, Mr Gary Stafford, said benefits were being realised from the capital invested in the processing plant at Phu Kham over t he pas t two years, with annual processing rates of more than 18 million tonnes per annum, well above the design, and metallurgical recoveries exceeding those predicted for each ore type.
“Open pit mining operations are performing well and the stage is set for year-on-year in creases in copper production over each of the next five years as head grades rise,” he said.
From 2014, the average life of mine strip ratio at Phu Kham is scheduled to be about 1:2:1. Open pit material movements at the Phu Kham open pit will increase between 2014 and 2016 to average 50 million tonnes per annum as life of mine waste pre-stripping and stripping requirements peak and some low-grade ore is stockpiled.
Waste will continue to be used where appropriate as a construction material for the tailings storage facility.
Considerable tailings storage capacity has been developed over the past two years sufficient to contain tailings disposal through to 2015. That is expected to result in a reduced capital expenditure requirement for facility construction over the next two years.
Phu Kham began production in 2008 and is expected to have a life of mine until 2023. PanAust exports copper from Phu Kham from ports in Thailand and Vietnam, with its biggest customer remaining China. Some offtake has also been sold to the Republic of Korea and India.
About 50 percent of Phu Kham's output is sold via long term contracts directly to smelters and traders, while the remaining output is sold onto the spot market.
vientiane times
