Milling operations have been temporarily suspended at the El Toqui zinc mine in southern Chile while operator Breakwater Resources (BWR-T) implements a development and optimization plan.
During the 3-month suspension, the company plans to carry out a development program at the mine, upgrade and refurbish equipment, change the mining methodology, and improve the throughput and performance of the processing plant. At the same time, the workforce will be reduced by 13% and improvements will be made to various other operating systems and a ship-loading facility.
Once the US$2.6-million program is complete, Breakwater expects cash operating costs to be reduced to about 45 cents per lb. of payable zinc. So far this year, operating costs have averaged 55 cents per lb. of payable zinc.
El Toqui is expected to produce about 34 million lbs. of payable zinc in concentrate this year, rising in 1999 to 65 million lbs. payable zinc, 1.3 million lbs. payable lead, 2,600 oz. gold and 147,000 oz. silver.
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