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Phu Bia extends life of Phu Kham mine
Phu Bia Mining, one of the largest mining companies in Laos, plans to keep its Phu Kham operation in Vientiane province alive for at least another decade after discovering new ore reserves.
PanAust, parent company of Phu Bia Mining Company, announced on its website that its Lao subsidiary has discovered a sufficiently large amount of ore reserves to secure a supply of mining raw materials to the Phu Kham Copper and Gold operation for 14 years.
Total Phu Kham ore reserve tonnes have increased by 37 percent. Copper, gold and silver have increased by 20 percent, 38 percent and 55 percent respectively when compared with the previous estimate on December 31 2009 after being adjusted for mining depletion during 201 0.
The increase in ore reserves is largely due to additional mineralisation resulting from infill and resource extension drilling together with a new resource model which incorporates improved gold and silver grade estimation, and revised metallurgical recovery assumptions.
According to the company, the Phu Kham upgrade project, which was approved in October last year, will increase ore processing rates and metallurgical recoveries from mid-2012, when ore head grades are scheduled to decline.
Consequently, annual copper in concentrate production will rise from current levels of between 60,000 and 65,000 tonnes to between 65,000 and 70,000 tonnes.
The company also says the Ban Houayxai Gold-Silver project, which was approved in March 2010, is on track to commence commissioning in December 2011 with first gold production and ramp-up during the March quarter 2012.
The project will produce an average of about 100,000 ounces of gold and 700,000 ounces of silver each year over its nine-year mine life.
PanAust's subsidiary in Laos is a significant contributor to the Lao economy. The company directly employs almost 1,900 Lao nationals, which comprises 84 percent of Phu Bia Mining's workforce.
The value of the company's copper, gold and silver production represents an estimated 10 percent of Laos' GDP and over 30 percent of exports.
Phu Bia Mining's total direct contribution to government revenues (royalties, taxation and tenement fees) in 2010 was about US$57 million. In February 2011 the company made profit tax payments totalling US$32.3 million for the 2010 year.
PanAust continued to work closely with local and central government agencies and community members to identify, prioritise and implement capacity-building programmes and projects in the focus areas of education, healthcare, agriculture, water and sanitation, infrastructure, and small business development.
For the second year running, PanAust has received the Best Community Development Initiative Award in the Southeast Asia category at the Asia Mining Congress in Singapore.
In 2010, the award was in recognition of the company's Livelihood Improvement Programme that assists the sustainable development of small businesses around the Phu Kham Copper-Gold Operation.
vientiane times
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