Lihir To Boost Production In 2nd Qtr
Lihir is expected to boost production in the second half of the current financial year. This was after Lihir executed several shutdowns during the December quarter as part of its transition to a bi-annual shutdown strategy aimed at improving equipment reliability and utilisation from the financial year 2021 onwards.
According to Newcrest’s quarterly report, it is expected the second half of the current financial year’s production at Lihir will be higher than the first half.
As a result, it says gold production at Lihir was 25 per cent lower than the prior quarter, driven primarily by lower mill throughput and lower head grade.
To a lesser extent, lower recovery rates also contributed. The report says that recovery rates in the December 2019 quarter of 73 per cent were four per cent lower than the prior quarter, primarily as a result of low autoclave availability due to maintenance downtime, thereby increasing the proportion of feed requiring flotation and proportionally increasing flotation losses.
Newcrest managing director and chief executive officer, Sandeep Biswas said: “As expected, Newcrest has achieved a significant improvement in its production and All-In sustaining cost per ounce in this quarter against the prior quarter.
“Central to this success was Cadia’s stand-out performance which culminated in the site achieving its second highest quarterly gold production result.
Telfer and Lihir’s production outcomes for the half year were below expectation and corrective action plans are being taken with the objective of improving their performance over the next six months.”
On the Wafi-Golpu front, the report acknowledged that the Mining Minister Johnson Tuke has advised that government has withdrawn support for the memorandum of understanding (MOU) with the Wafi-Golpu Joint Venture (WGJV), citing the delay caused by the legal proceedings initiated by the Morobe provincial government rendering the timetable in the MoU as unachievable.
It stated that the state intends to resolve the legal proceedings and to work with the WGJV to expedite the project permitting discussions.
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