Dugald River is still on target despite COVID-19 but owners MMG said internationally they had a challenging first quarter 2020 production result down a quarter on the previous period.
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MMG said their results was largely due to COVID-19 issues at their biggest plant at Las Bambas in Peru forcing them to withdraw guidance for 2020.
MMG CEO Geoffrey Gao said.despite the spread of coronavirus MMG had not recorded any cases globally.
"Like the rest of the global community, MMG has been impacted by the spread of coronavirus with cases recorded in each of our host countries," Mr Gao said. "We acted swiftly to implement stringent safety measures to protect our people and communities. Each of our operations has implemented business continuity plans designed to assist in limiting the potential for the virus to spread and to mitigate operational risks and impacts."
MMG said results at Dugald River was close to target levels recording zinc production of 35,505 tonnes down 8pc on the same period last year with lower feed grades and temporary recovery challenges impacting the result.
MMG said mining and milling volumes were in line with plan and showed Dugald River's capacity to operate in excess of nameplate capacity on a sustained basis even though first quarter mining and milling volumes at Dugald River are typically below other periods due to wet weather.
"Ore mined during the first quarter of 2020 was significantly higher (18%) than the prior year comparative period, reflecting the extensive flooding at Dugald River in early 2019," the company said.
"The depletion of pre-commissioning ore during the second half of 2019 resulted in low surface ore stocks at the beginning of 2020, limiting mill throughput for the period until a surplus was established toward the end of the quarter."
MMG said milling was also impacted by unplanned maintenance requirements, including wet weather related power disruptions.
"This, combined with lower ore grades and recoveries, resulted in metal production volumes that were below both the prior quarter and prior year comparative periods," they said.
"Grade declines partially reflect mine sequencing, in addition to higher than anticipated dilution in the South mine."
MMG said the 2020 focus was was opening up new operating areas, to ensure a steady feed of ore to the mill.
"The optimisation of recoveries will be a major area of focus in the processing plant," MMG said.
"This work will be key in ensuring Dugald River remains on track to deliver annual mine capacity of two million tonnes and targeted zinc equivalent production in excess of 200kt per annum, by 2022."
Mr Gao said that while the Company expects commodity prices to remain volatile in the near term, it was confident that strong fundamentals for both commodities will prevail.
"MMG continues to maintain the confidence and support of our major shareholder China Minmetals Corporation and we will continue to focus on optimising our business and ensuring that we are well placed to recover quickly as COVID-19 restrictions ease in China and elsewhere."
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