FIRST-quarter production at the K92 mine in Eastern Highlands, Papua New Guinea was affected by explosive supply issues and the surge in the Covid-19 cases which forced the company to reduce numbers on the mine site.
Chief executive officer John Lewins said the second quarter was also affected by the suspension of fly-in fly-out travel for senior expatriate employees by the Australian government due to the increasing number of Covid-19 cases arriving from PNG into Queensland.
He said this was lifted late last month following engagement between the resource industry through the PNG Chamber of Mines and Petroleum, the Australian and Queensland and PNG governments.
Enhanced set of protocols was put in place to ensure that all personnel travelling back to Australia have minimal chance of carrying the virus.
Despite this, Lewins told The National that the company expecteed gold production in the second quarter to be significantly higher than the first quarter.
Therefore, production for the first half of this year should be similar to the second half of 2020.
“In the first quarter, we treated a record quarterly tonnage of 73,221 tonnes, a 54 per cent increase from Q1 2020,” he said.
“First quarter gold equivalent production of 18,654oz, or 17,774oz gold, 426,153lbs copper and 7,925oz silver.
“At this point we anticipate that tonnage treated in the second quarter will be higher than the first quarter and therefore a new record.
“This will make the first half of 2021 a record in terms of tonnes treated.
“We also anticipate that gold production in the second quarter will be significantly higher than the first quarter and so production for the first half of 2021 should be similar to the second half of last year.”
Lewins said K92 had already paid more than K28 million in advance profits tax in the second quarter of this year and expected to pay in excess of K80 million for 2021.
It paid K43 million in 2020.
The National / Pacific Mining Watch