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Kainantu Mine Capex Set At K160 Million For 2020

Kainantu mine, operated by Canadian mining company, K92 Mining Inc, will see its 2020 rollout of capital expenditure (capex) for the year set for K160 million.

Responding to queries from the Post-Courier last week, K92 CEO John Lewins, outlined the project’s performance and plans moving forward as part of its 13-year second phase expansion program announced in March 2019, valued at around K700m.

With last year’s capex set at K100 milion, Mr Lewins stated anticipated capital expenditure in 2020 will be approximately K160 million, comprising K80 million for plant and equipment, K45 million in capital development, K25 million on the development of a new twin incline system and K10 million on expansion of the tailings facility.

“As you are aware in March 2019 we made the decision to proceed with the phase 2 expansion, which will double the size of the mining operation from 200,000 tonnes to 400,000 tonnes per annum and increase annual production to an average of over 120,000 ozs gold equivalent (AuEq) per year,” he said.

“This decision to expand has resulted in significant additional investment in the Kainantu Mine during 2019 with approximately K100m committed to capital expenditure on mobile plant, fixed plant, development, camp, workshops, offices, etc.

“The expansion has also resulted in the creation of significantly more employment opportunities with over 800 local landowners and PNG nationals now employed directly or through contractors on the mine.”

Last year, K92 more than doubled the capacity of the underground mining fleet of loaders, trucks, jumbo drills and ancillary mobile plant.

“In addition the underground power reticulation was upgraded, the installed ventilation capacity was more the tripled and a new higher capacity dewatering system commissioned,” Mr Lewins said.

“The expansion of the plant was commenced with the installation of a new gravity circuit, followed by an upgrade of the crushing circuit.”

He said the balance of the new plant installation should be completed by the end of March which effectively doubles the plant capacity to 400,000 tonnes per annum.

Continue reading at https://postcourier.com.pg/kainantu-mine-capex-set-at-k160-million-for-2020/ | Post Courier

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