Construction at MMG’s Dugald River zinc project is almost nine-tenths complete, according to the company’s third quarter 2017 production result report released Wednesday.
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The report said the project is now 89% complete and is on track for first production by the end of 2017.
The total development cost is now expected to be between US$550-$570 million, significantly lower than previous guidance of US$600-$620 million.
MMG CEO Jerry Jiao said that with construction of Dugald River nearing completion, he was particularly proud of the team. “Their dedication and focus will deliver first concentrate ahead of schedule and into a market of tightening supply and rising prices,” he said.
MMG expects to produce 65,000–72,000 tonnes of zinc in 2017 with a 35% increase in zinc ore reserves (contained metal) primarily due to the successful drilling program at Dugald River.
The process plant and associated infrastructure construction is now completed, as is the dry and wet commissioning of processing facilities and the crushing, milling and flotation of waste rock and ore commissioning are in progress.
When in full production it will be one of the world’s top 10 zinc mines.