MMG Limited released its June quarter 2015 production results today, reporting higher copper cathode production and solid progress at Las Bambas.
Total first half 2015 copper cathode production of 83,727 tonnes was up 10% on the corresponding half 2014 – the result of standout performances at MMG’s Kinsevere and Sepon operations.
Kinsevere contributed 39,095 tonnes of copper cathode – a new half year production record and 17% higher than the same period in 2014 – while Sepon continued the transition to harder ore types with half year production of 44,632 tonnes.
Total first half zinc in zinc concentrate production of 286,144 tonnes was 6% higher than the same period in 2014, driven by higher zinc production at Rosebery and Golden Grove and stable production at Century. Century, which will complete mining of the open-pit in July, contributed 221,049 tonnes of zinc during the first half.
MMG Chief Executive Officer Andrew Michelmore said that the Company’s first half performance demonstrated the value of an ongoing focus on asset utilisation and operational capability.
“Our focus on improving asset utilisation and efficiency continues to deliver. The new half year production record at Kinsevere is a highlight – achieved through operational improvements rather than plant upgrades.
“Sepon also achieved record milling during the June quarter despite transitioning to harder ore types.
“Continuously improving asset utilisation and cost discipline is just how we operate,” Andrew said. “This focus on efficiency is especially important at a time of lower average metals prices and challenging business conditions throughout the first half.”
Copper production guidance has been increased by 3,000 tonnes and MMG now expects to produce 171,000 – 186,000 tonnes of copper in 2015. Annual zinc production guidance is unchanged at 440,000 – 510,000 tonnes of zinc.
Las Bambas
At Las Bambas, construction continued to plan with the focus now on construction completion and preparation for project commissioning. As at 30 June 2015, overall project construction was on plan at 95% complete with concentrate-related construction at 90% completion.
Mr Michelmore said, “Construction at Las Bambas is continuing to plan and we expect first production of concentrates during the March quarter 2016.
“Project highlights during the quarter include the commissioning of the 130 kilometre 220kV power transmission line to site and mine power loop. This has allowed us to ramp up pre-stripping activities, with approximately 23 million tonnes of material moved to date.”
MMG also entered into contracts for the transportation of copper concentrates by road and rail from Las Bambas to the Port of Matarani during the June quarter.
Dugald River
MMG is considering the updated development plan for Dugald River, which was prepared in the first half following the completion of the 2014 trial stoping program and various project studies.
The updated development pathway for Dugald River is likely to include lower annual throughput over a longer mine life and a simplified logistics chain. All options continue to be considered with the objective of maximising long-term shareholder value.
Mr Michelmore said, “We continue to expect a decision regarding the development pathway for Dugald River during the September quarter.”
(Ends)
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Jillian D’Urso
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Peter Budd
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