Dugald River is now established as one of the world's top 10 producing mines internationally in zinc, according to MMG's annual results for 2018.
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The report said Dugald River, situated 70km north-west of Cloncurry, produced 147,320 tonnes of zinc in concentrate in 2018.
"Total mill throughput of 1.76 million tonnes in 2018 represented 103% of notional nameplate capacity, demonstrating a proven capability to operate the mill above design levels," MMG said in the report.
The mine generated revenue of US$247.3 million and EBITDA of US$87.6 million in the eight months since achieving commercial production (May 1, 2018).
MMG said the ramp up was progressing "at world class rates" with 2019 production expected to be between 165,000 and 175,000 tonnes of zinc in concentrate and C1 costs of US$0.58 to US$0.68/lb.
MMG Chief Executive Officer Geoffrey Gao said they delivered a significant milestone in 2018 with the commissioning of its second greenfield development project in two years with the start of commercial production at Dugald River.
However Mr Gao acknowledged the mine has been impacted by the recent floods that devastated North West Queensland and closed the Mount Isa-Townsville rail line.
"At Dugald River, we have implemented alternative arrangements to truck concentrate to the Port of Townsville following the recent extreme weather events in the region and the subsequent significant impact to the rail line," Mr Gao said.
“Production continues at site and we have now secured a fleet of trucks enabling us to continue to transport concentrate in sealed containers until rail access is expected to be re-established between late April and mid-May.
The annual report said the Dugald River zinc mine would operate over an estimated 20 years.
The total capital cost for Dugald River, from August 1, 2015 until commercial production was approximately US$547 million, including the capitalised revenue generated during the pre-commissioning and ramp up stage prior to May 1, 2018.
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
