Phu Bia to open new gold mine in Laos
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Phu Bia, one of the largest mining companies operating in Laos,
expects to kick off its new gold mining project in Vientiane province
in March, the Australian miner reported.
PanAust, the parent company of Phu Bia, this week announced the
progress of its Ban Houayxai gold and silver mine project, saying the
US$168 million gold and silver mining facility is scheduled to come on-
stream in March this year.
The new mining facility would deliver about 85,000 ounces of gold
after a credit of about 200,000 ounces of silver in 2012.
The Ban Houayxai gold and silver project, which comprises an openpit
mine feeding ore into a conventional four-million tonnes a year carbon-
in-leach process plant, is designed to have a nominal production
profile of 100,000 ounces a year of gold and 700,000 ounces a year of
silver.
PanAust also reported the 2012 production forecast at Phu Kham would
reach after precious metals credit from between 50,000 and 55,000
ounces of gold and between 550,000 ounces and 600,000 ounces of
silver.
Phu Bia mining's increased gold and silver production capacity
comes as both metals rise in value on the world market. More people
are buying gold as a long term investment as they lack confidence in
other forms of investment amid the economic downturn and ongoing
volatility.
The price of gold stood at US$1,665 per ounce yesterday.
According to PanAust, the Phu Kham operation produced 59,897 tonnes of
copper in concentrate last year, which was in line with the
company's previous guidance.
The achievement was made possible despite a seven-day shutdown in
October, to complete a planned reline of the semiautogenous grinding
mill and tie-ins relating to the Phu Kham upgrade project.
PanAust reported a record monthly copper production of 6,639 tonnes
during December at its Phu Kham operations.
For the three months to December, the operation produced some 16,640
tonnes of copper, up from the 13,043 tonnes produced in the three
months to September.
The Phu Kham operation processed ore at a yearly rate of 13.6 million
tonnes, above the nameplate capacity of 12 million tonnes a year, the
miner said in its report.
Phu Bia is one of the two Australian mining companies in Laos. The
company has been awarded a Labour Order Class 1 from the Lao
government in recognition of its outstanding contribution to rural
socio-economic development and poverty eradication.
In 2011, Phu Bia Mining paid the Lao government about US$31.3 million
in royalties, US$4.4 million in income tax, US$0.06 million in
concession and service fees, US$1.4 million in customs excise/import
duty, US$31.5 million in profit tax, and US$12.5 million in value
added tax.
The company also received the Best Community Development Initiative
Award in 2010 for its Livelihood Improvement Programme, and again in
2011 for its Technical Trades Training Programme.