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Sepon mine boosts copper output 7 percent
Sepon Gold and Copper Mine in the central province of Savannakhet saw a 7 percent increase in copper output in the March quarter, according to a top company official.
“The completion of the Sepon copper expansion project saw copper cathode production rise 7 percent on the same period last year, and the project is on track to meet new nameplate capacity of 80,000 tonnes per annum,” MMG CEO Mr Andrew Michelmore said as quoted in his March quarter report.
Mr Michelmore also said the increased output amid the rising price of copper on the world market would help the company to achieve rapid payback on its investment.
MMG resumed the US$160 million Sepon Copper expansion investment project at the end of 2009 after it took over the mine from OZ and the global economy began to recover from the financial crisis. The expansion project will increase annual copper cathode production at the Sepon mine from around 65,000 tonnes to a nameplate capacity of 80,500 tonnes.
The development of the flotation desliming circuit at Sepon will allow improved pyrite recovery from the leach tails to maintain soluble iron levels in the copper processing circuit.
This will result in a reduction in the amount of pyrite purchased annually to supplement the flotation concentrate production and the potential for acid formation in the tailings storage facility.
The copper expansion project also includes construction of a second 115kv power line that will allow the mine to source local hydroelectric power.
The new power line helps to address the risk associated with dependency upon mains power from the existing single transmission line from Thailand and also provide the additional power support required to complete the expansion project.
The Sepon copper and gold operation comprises a 1,250 square kilometre contract area located about 40km north of the town of Sepon. Gold production at the mine commenced at the end of 2002 and copper in early 2005.
According to the company, the mining concession area has strong ore reserve, which can ensure the mining life of the Sepon copper plant until 2020 and gold production plant until 2012. The new discovery of the ore reserve will help the company to extend the mining life.
From 2003, the Sepon mine has generated revenues for the government of more than US$600 million, in the form of taxes and fees.
The mine has made a 2010 profit tax payment of more than US$92 million to the Lao government. In 2010, it also generated other form of income for the government including royalties from gold and copper sales worth US$26.5 million, income tax payments of US$5 million, and rental fees of US$45,000. The total revenue paid to the government for 2010 was US$123.6 million.
vientiane times
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