Sepon gold production is forecast at 70,000 ounces by 2011
LXML Sepon has expected to produce gold about 70,000-75,000 ounces (approximately two tonnes per year) for 2011 while the copper production is forecasted at 80,000 tonnes.
The gold production of Sepon, under a 50-year of concession with a total investment of US$655 million started in 2002 and copper by 2005.
Copper production by MMG's Sepon Copper-gold Operation in Sepon, Savannakhet
The Australian Sepon mine was taken over by Chinese investor in 2004 due to the global crisis. The mine currently mines and processes oxide gold ore-gold ore which is at or very close to the surface.
However, study of primary gold ore (which lies beneath the oxide gold ore) is expected to report later this year. If favourable, a substantial investment would be needed to modify the processing plant in order for it to process the different type of ore. Since the commencement of operations, the Sepon gold operation has produced over one million ounces of gold through open pit mining and conventional treatment of oxide gold ore. Current reserves of oxide gold are not expected to last much beyond 2012. Copper reserves are currently forest to last until at least 2020.
Gold production was 12.7% lower than the previous quarter, due to declining availability of oxide gold ore at Sepon.
The capacity production of copper is currently 220 tonnes per day or about 80,000 tonne yearly (one tonne is sold at US$7,000), thanks to the expansion project of copper plant.
The main market of Sepon copper is Thailand, accounting for 71%, Laos is 0.8% and the rest is other country.
