Photo Credit: K92 Mining Inc
Production at the K92 mine in the Eastern Highlands was hampered in the first quarter by explosive supply difficulties and a rise in Covid-19 cases, forcing the firm to decrease personnel on the mine site.
The prohibition of fly-in fly-out travel for top expatriate personnel by the Australian government in the second quarter was also a factor, according to CEO John Lewins.
He said the ban was lifted late last month as a result of talks between the resource industry, the Australian and Queensland governments, and the PNG government through the PNG Chamber of Mines and Petroleum.
Despite this, Lewins said that the firm expects gold output to be considerably higher in the second quarter than in the first.
As a result, production in the first half of this year should be similar to that in 2020's second half.
“In the first quarter, we treated a record quarterly tonnage of 73,221 tonnes, a 54 per cent increase from Q1 2020,” he said.
“First quarter gold equivalent production of 18,654oz, or 17,774oz gold, 426,153lbs copper and 7,925oz silver.
“At this point, we anticipate that tonnage treated in the second quarter will be higher than the first quarter and therefore a new record.
“This will make the first half of 2021 a record in terms of tonnes treated.
“We also anticipate that gold production in the second quarter will be significantly higher than the first quarter and so production for the first half of 2021 should be similar to the second half of last year.”
K92 had already paid more than K28 million in advance gains tax in the second quarter of this year, according to Lewins, and was on track to pay more than K80 million in 2021.
In 2020, it paid K43 million.
Reference:
Moi, Clarissa. The National (18 June 2021). “Mine tackles Covid, supply issues”.
