International miner MMG said its Dugald River zinc mine has helped drive a strong December quarter for the company.
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MMG Limited announced its fourth quarter 2018 production result last week reporting production of 466,475 tonnes of copper and 223,041 tonnes of zinc for the full year to 31 December.
The results were the highest for the year CEO Geoffrey Gao specifically mentioned the mine 60km north of Cloncurry.
“The strong performance at Las Bambas (Peru) and Dugald River during the December quarter enabled us to deliver the best quarterly operational performance of 2018,” Mr Gao said.
The report came days after a profit warning due to falling copper and zinc prices but Dugald River continued its ramp up as it remains on schedule to become one of the world’s top 10 zinc mines producing 41,641 tonnes of zinc in zinc concentrate in the December quarter.
That represents a 9% improvement over the prior reporting period.
Mining and milling rates improved by 15% and 3% respectively and are operating consistently above design capacity.
Dugald River had a total 2018 production of 147,320 tonnes of zinc in zinc concentrate which was at the upper end of the company’s revised guidance range of 140,000 to 150,000 tonnes.
This included 39,717 tonnes pre-commercial production, achieved before May.
Since the start of commercial production, production costs in line with expectations largely driven by improved prices on lead by-product and lower zinc concentrate treatment charges.
MMG expects 2019 production to be 165,000-175,000 tonnes of zinc in zinc concentrate.
“Throughout 2019 the mine will continue to be developed to open up to a steady state number of operating stopes, with the main areas of focus to improve management of geotechnical conditions underground to minimise ore grade dilution and increasing mining production rates,” the Q4 production report said.
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