Phu Kham to increase production capacity to 16 Mtpa next year
Phu Kham Copper-Gold Operation will increase production capacity from 12 million tonnes per year (Mtpa) to 16 Mtpa by mid-2012, according to a consultant to the Phu Bia Mining, Mr. Souvath Sisoutham.
According to its plan, the company wants to have an annual copper production increased to between 65,000-70,000 tonnes.
Phu Kham Copper-Gold Operation located in Saysomboun district of Vientiane province produces a copper-gold concentrates, grading approximately 25% copper, 7g/t gold and 60g/t silver, according to Mr. Souvath.
In 2009, the company produced over 54,000t of copper, 56,760oz of gold, 440,300oz of silver at a competitive cash cost of US$0.97/lb.
In 2010, its production was 67,000t of copper, 60,000oz of gold and 500,000oz of silver, said Mr. Souvath.
He continues that the processing plant has a design production capacity of 12 million tonnes per annum, and comprises a SAG mill and ball mill grinding circuit, each rated at 13MW, with copper and precious metal recovery by flotation.
Phu Bia Mining is developing a US$ 150 million gold-silver project at Ban Huayxai in Saysomboun district, Vientiane province in a concession area of 2,636 sq km.
A feasibility study indicates the project will be able to produce on overage, over 100,000oz of gold and 700,000oz of silver annually for at least eight years.
Phu Bia Mining has made a major contribution to the Lao economy investing around US$700 million and accounting for approximately 10 percent of the nations estimated GDP.
In 2010, the Lao Government received around US$57 million in royalties, taxes and tenement fees.
In addition, on an annual basis, the Company allocates US$300,000 for community development projects, he added.
mid-2012, according to a consultant to the Phu Bia Mining, Mr. Souvath Sisoutham.