THE first stage of China Gold International Resources Phase II expansion at Jiama Copper-Polymetallic Project in Tibet Autonomous Region will achieve full capacity by the end of the year. In the first half of 2017, 31.97 million pounds of copper were produced, up 59% from the 20.11 million pounds in the first six months of 2016.
|The Jiama Copper-Polymetallic Project in Tibet Autonomous Region.|
The company says the expansion work has increased production significantly with June quarter figures showing an extra 38% produced. There were 15.25 million pounds of copper produced, up from 11.05 million pounds in the corresponding period of 2016.
Cash production cost, US$0.73, and total production cost, US$1.08, of copper per pound decreased from US$0.94 and US$1.36 respectively in Q2, mainly because of the higher ore grade mined.
The Phase II expansion comprises two stages with each providing daily mining and mineral processing capacity of 22,000 tonnes. Series I was completed late last year with commissioning beginning in December 2016. This has increased daily capacity from 6000 tonnes to 28,000 tonnes.
At CSH Gold Project in Inner Mongolia quarterly production was 6% lower than Q2 of 2016 with 45,798 ounces produced, down from 48,867 ounces. The decrease was mainly due to lower recovery rates.
The total gold production cost increased due to higher depletion and depreciation costs. The cash production cost for the June quarter decreased by about 5% to US$659 per ounce due to lower waste removal costs.
Commenting on the results, company CEO and executive director Bing Liu said, “I am pleased to report that China Gold International saw a strong second quarter with increased revenue and reduced production costs.
“As the CSH mine enters into what is traditionally its peak production quarter, we are optimistic that we can utilise the prime operating conditions to increase gold production. In addition, the company continues to pursue growth opportunities and optimise its capital structure through strategic initiatives intended to build shareholder value.”
China Gold and wholly-owned subsidiary Skyland Mining (BVI) recently entered into a subscription agreement for the issue of corporate bonds valued at US$500 million. Net proceeds will be used for repaying existing indebtedness, working capital and general corporate purposes.