Vengold (VEN-T) has been advised by Papua New Guinean-based Lihir Gold (LIHRY-Q) that the amount of gold expected from the Lihir mine this year has been reduced to 530,000 oz.
The 70,000-oz. shortfall is attributed to autoclave maintenance and remedial work on the oxygen plant, which is now operating at its design levels.
One of three autoclaves is expected to undergo brickwork modifications by the end of 1998; the others will be modified in 1999.
Gold production next year is expected to exceed 700,000 oz.
The mine is owned by Lihir Gold, whose other shareholders include Rio Tinto (RTP-N) and Australian-based Niugini Mining, each of which has about a 17% share, and Battle Mountain Gold (BMG-N), which owns 50.5% of Niugini. The open-pit mine is being managed by a subsidiary of Rio Tinto under a long-term contract.
Vengold has granted Placer Dome (PDG-T) the right of first refusal on Vengold’s direct and indirect interests in Lihir Gold. Vengold now owns 19.3% of the mine, directly and indirectly, and has no intention of relinquishing that interest.
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