Polyus might boost gold output at Kuranakh 14% in 2012
YAKUTSK. April 11 (Interfax) - OJSC Aldanzoloto Mining Company, a unit of leading Russian gold miner OJSC Polyus Gold , plans to mine 3.7 million tonnes of ore at the Kuranakh mine in Yakutia in 2012 and produce 4,201 kg of gold in base bullion at the Kuranakh gold recovery plant, company chief executive Alexei Golubenko said at a meeting with the regional government on Wednesday.
He stressed that the company prefers to give conservative forecasts at the moment. "Aldanzoloto for several years took on many obligations that were not met, so now we won't rush," Golubenko said.
The production target for gold in base bullion at Kuranakh was 5,215 kg for 2010, but only 3,846 kg were produced, and last year's target was 4,202 kg but actual production amounted to 3,676 kg. The company therefore intends to increase production by 14.3% in 2012.
"Work on overhauling the Kuranakh gold recovery plant was completed in November last year and we have begun to gradually move toward design capacity, gold production has even been slightly more than planned," Golubenko said. The plant produced 700 kg of base bullion in November-December, while the target was 693 kg.
Golubenko also said that the company would provide an exact production forecast for this year by July 1. There are two objective factors that can have a major impact on production - winter frosts and the spring thaw when roads can be impassable. The frosts have passed, but the thaw is still ahead. "After this, by July 1, we will be able to provide virtually an exact forecast," he said.
He said that the plant should increase processing to about 4 million tonnes of ore per year by 2014-2015. Furthermore, there are plans to process another 4 million tonnes using the heap leaching method. "We have done work to confirm the mineral resource base of the deposit. About 70% of samples have already been tested, and by November we plan to prepare an investment program, forecast and plan to expand gold mining, which calls for the launch of a heap leaching unit. The preliminary specifications for the technology are already ready," Golubenko said.
The ore at Kuranakh has high clay content. Under a development strategy to 2020 approved by the Polyus board, there were plans to complete commercial testing at the Kuranakh ore field in 2011 of ore separation and subsequent processing of fractions at the overhauled recovery plant and heap leaching unit. In future, the priority will be to implement a unified plan for the development of the Kuranakh field and optimize technology.
Aldanzoloto's sole shareholder is CJSC Polyus Gold Mining Company, which consolidates the operating assets of OJSC Polyus Gold, the controlling shareholder of which is Jersey-based Polyus Gold International Ltd (PGIL).