Minmetals Resources Limited (HKEx stock code 1208) (“MMR”) today announced its Second Quarter Production Report for the three months ended 30 June 2012. The report covers the Company’s MMG operations in Australia, Laos and the Democratic Republic of Congo (DRC).
KEY POINTS
- Record quarterly production at Century with 141,382 tonnes of zinc in zinc concentrate produced during the quarter. Planned maintenance will result in lower production in the second half of 2012.
- Record quarterly and year-to-date copper cathode production at Sepon with the operation again exceeding pro-rata nameplate capacity for the quarter.
- Year-to-date copper cathode production was 47% higher than 2011 following the inclusion of Kinsevere and the continued ramp up of Sepon’s expanded copper plant.
- Temporary diesel generators delivered and commissioned at Kinsevere during the quarter. The use of diesel generators in the short term provides a stable back-up power source and enables the potential for ramp up to nameplate capacity in the second half of 2012.
- Production and C1 cost guidance is unchanged at all sites, except Kinsevere, and the company expects to produce a total of 601,000 – 620,000 tonnes of zinc and 137,000 – 149,000 tonnes of copper in 2012.
Chief Executive Officer Andrew Michelmore said he was pleased with the second quarter results.
“We produced an excellent result this quarter with both our Century and Sepon operations achieving quarterly production records,” he said.
“The results are a demonstration of our commitment to extract additional value from our existing assets.”
“Year-to-date zinc in zinc concentrate production at Century was 14% higher than the same period last year. Planned maintenance will limit second half production,” he said.
“Sepon produced 21,739 tonnes of copper cathode which was 10% above the previous quarter and above designed nameplate capacity on an annualised basis.”
During the quarter, temporary diesel generators were also delivered and commissioned at Kinsevere in the DRC.
“The provision of diesel generators provides us with a stable back-up power source to supplement grid-sourced power at our Kinsevere operation,” said Mr Michelmore.
“They will also enable Kinsevere to continue to ramp up to nameplate capacity in the second half of 2012 and as such we have lifted production guidance from 28,000-32,000 tonnes to 30,000-35,000 tonnes of copper cathode in 2012.”
During the quarter, draft Environmental Authority (EA) conditions for the Dugald River development project were agreed with the Queensland Department of Environment and Heritage Protection (DEHP). The full Environmental Authority is expected in the third quarter 2012.
The final decision to develop the Dugald River project is expected to be made by the Board in 2012 and, subject to other required approvals, the Company aims to have the mine in operation during 2014.
For further information, please download the Second Quarter Production Report 2012 or visit www.mmg.com.
About Minmetals Resources Limited
Minmetals Resources Limited (MMR) is a mid-tier global resources company that mines, explores and develops base metal projects around the world. The company is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange under Stock Code: 1208.