MMG Limited has announced its Dugald River zinc operation achieved commercial production on May 1.
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The company said the date of commencement of commercial production was significant as it marks the time from which the Cloncurry site would be treated as an operation rather than a project for accounting purposes.
Executive General Manager Operations – Africa, Australia and Asia, Mark Davis said this confirmed the ramp up of the plant was progressing on schedule and commercial production has been reached in line with guidance to the market.
“Dugald River is a world class operation that has been delivered under budget and ahead of schedule. Its successful achievement of the commercial production milestone inside five months of first concentrate delivers on our commitment to drive value for shareholders,” Mr Davis said.
“MMG is re-emerging as a major zinc player – when Dugald River completes ramp up and is operating at design rates it will be one of the world’s top 10 zinc mines.
“We remain positive about the long-term fundamentals for zinc and Dugald River has come into production at a time of tightening global supply and strong prices."
Zinc production commenced at Dugald River in the fourth quarter 2017 with the first concentrate achieved November 8, 2017.
First shipment of 10,500 wet metric tonnes of zinc concentrate produced as part of commissioning activities departed the Port of Townsville for Huangpu, China on December 16.
MMG said it would provide an update on production at Dugald River in its Second Quarter Production Report.