Laos Gold Mine Resumes Production After Six Years

SEATTLE (Scrap Monster): Chinese Chifeng Jilong Gold Mining Co announced that it has launched gold ore processing at its Sepon mine in Laos. The restart, after a period of almost six and half years, follows gold prices hitting life-time highs recently. The restart comes three months ahead of schedule, amidst pandemic outbreak.

The statement published on the company website noted that it expects to produce finished gold in early June this year. A full ramp up to full capacity is estimated by 2021, said Kevin Chen, the company’s vice general manager.

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It must be noted that MMG Ltd- the previous owner of the mine had ceased gold production from the mine in December 2013, citing profitability concerns. Later in 2018, Chifeng Jilong Gold Mining Co purchased 90% stake in the mine’s operator for a total sum of $275 million. The company has been ramping up operations at the mine in order to enable earliest production restart.

The company plans to produce 1-1.6 tonnes of gold in 2020. The output will be further boosted to around 7 tonnes next year. Meantime, the mine’s copper output is expected to drop from 72,000 tonnes in 2019 to nearly 45,000 tonnes this year.

The Sepon mine, located in the south of the country in Savannakhet Province, is one of the largest gold mines in Laos. The mine has estimated reserves of 7.65 million oz of gold.