THE Kainantu gold mine continues to produce high grades and increasing rates of material movements, vice-president for business development and investor relations David Medilek says.
Following the announcement early this year to double its production from 200,000 ounces (5.669 metric tons) to 400,000 ounces (11.339 tons) per annum by 2020, Medilek said production and costs were tracking better than the company’s original projection for 2019.
“As a result, in the second quarter financial results released on Thursday, Kainantu mine increased 2019 production guidance from 72,000 ounces (2.04 tons) to 80,000 ounces (2.26 tons) of gold equivalent – from 68,000 ounces (1.92 tons) to 75,000 ounces (2.12 tons) – and 2019 cost guidance improved to US$780 (K2,648) – US$820 (K2,784) per ounce gold all-in sustaining costs from US$720 (K2,444) – US$760 (K2,580) per ounce.”
He said from the second quarter financial results, the mine continued to produce gold at a profit and with a major focus on socially responsible mining.
“K92 (Kainantu) has one of the best safety records in the entire Australasia region, with over three years without a lost time injury,” he said.
“Additionally, K92 is committed to the people of PNG and the local communities, employing over 700 people, of which over 95 per cent are from Papua New Guinea.”
The company also has long-term social and economic development initiatives, including (but not limited to):
- Joint venture agreements between landowner groups and service providers to provide long term supply of services, including transport, security, ancillary mobile plant and catering and camp services;
- scholarship to support children of landowners for studies at tertiary institutions, with 11 scholarships provided last year and 50 this year; and,
- infrastructure and services development programmes.
Medilek said told The National last Friday that the company was committed to also expand its operations in Kainantu, Eastern Highlands, which was currently underway and also explored new areas via reinvesting profits from the mine.
“Exploration activities have considerably increased, with six drill rigs now operating versus the two rigs operating last year.”
Medilek reiterated that they were committed to the development and prosperity of the people of the locals through responsible mining.