Sepon cracks tonnage record for copper
Sepon cracks tonnage record for copper
MMG Lane Xang Minerals Limited Sepon (MMG LXML Sepon) has achieved record copper production in 2013 reaching 90,030 tonnes, an increase of 4 percent on 2012 production levels, the company has announced.
Sepon's copper plant, located in Savannakhet province, is consistently operating above original design capacity of 65,000 tonnes of copper cathode per year. The plant was upgraded in 2011 to increase its capacity to 80,000 tonnes.
“This record was made possible thanks to strong teamwork, improvement to procedures and the hard work of all employees,” MMG LXML Sepon General Manager Rick Watsford said in a company statement.
The new record was disclosed following the announcement made previously by the company, which operates the Sepon Copper and Gold mine in Savannakhet province that it would focus on copper production, one of the main sources of company revenue.
In 2013 MMG LXML Sepon, a subsidiary of Hong Kong stock market-listed MMG, announced its decision to halt gold production in December last year.
The decision was made after the company recognised continuing to produce gold at Sepon would be uneconomical given gold prices had fallen considerably last year and the cost of producing gold at Sepon has doubled since 2012, due to the declining availability and grade of gold ore, the company said.
MMG LXML Sepon said previously that gold production was originally scheduled to cease in late 2011. However, a significant increase in gold prices provided an opportunity to extend production through processing lower-grade ores.
It was reported recently that the company expected to produce 40,000 to 50,000 ounces of gold in 2013. Gold production at Sepon saw continued reductions after reaching its peak in 2005, during which it produced about 100,000 ounces a year. In 2012, the company produced 70,000 ounces.
The company said the suspension of gold production at the mine would not cause a significant impact to its revenue generation.
Instead, Mr Watsford said, the company expected to deliver further productivity improvement this year.
“This will further enable MMG LXML Sepon to earn the privilege of continuing to grow. Achieving this will add to our already significant status as a development partner and contributor to progress and improved living standards in Lao PDR,” he said.
Following its decision to halt gold production, the company announced the layoff of some employees, but it has not yet confirmed the details.
Since production commenced in 2003, MMG LXML Sepon has paid over US$1 billion dollars to the Lao Government in taxes and royalties, making the company the largest taxpayer in the country.
In addition, MMG LXML Sepon has invested over US$5 million dollars through the Sepon Trust Fund in community development programs in Vilabouly District.
vientiane times
