Dugald River zinc mine continues to perform strongly despite disruptions due to the floods, say owners MMG in its first quarter 2019 report.
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MMG CEO Geoffrey Gao said the mine, located 70km north of Cloncurry, produced 38,665 tonnes of zinc in zinc concentrate for the quarter, up 35 per cent from the same time last though down seven per cent on the previous quarter due to the impact of the severe flooding event in February.
"Importantly, the team achieved this result while also managing the impacts of extreme wet weather and flooding events in North Queensland," Mr Gao said.
MMG said the floods around Dugald River and the Cloncurry to Townsville rail corridor temporarily impacted production and concentrate transport during the quarter.
They put in place alternate trucking arrangements and on April 15 they opened a temporary rail transfer facility at Hughenden to restore access to Townsville port.
They expect to return to normal operation by mid May now that the full railway line has been re-opened.
Despite the temporary disruption of mining and logistics, MMG said Dugald River is still expected to achieve annual production guidance of 165,000 to 175,000 tonnes of zinc production though costs were expected to increase due to materially higher benchmark zinc treatment charges in 2019 and additional logistics costs associated with the floods.
"For the remainder of 2019, the focus will be on continuing mine development to open a higher average number of operating stopes to ensure stable feed to the mill," MMG said in its first quarter report.
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