Gold Fields reports delay in first gold from Chile project
Diversified gold producer Gold Fields has downgraded its 2023 and 2024 production expectations from its new Salares Norte mine, in Chile, owing to a delay in first gold from the project.
In a project update on Friday, the JSE- and NYSE-listed mining firm explained that certain components required commissioning by the original equipment manufacturer (OEM) vendor to maintain the validity of their warranties.
“Challenges in securing the OEM vendor representatives, due to previously announced delays by the main contractor, have resulted in an approximate two-month delay to commissioning of the mills and filter presses,” Gold Fields said.
If first gold is produced on December 1, production for 2023 would be 1 000 gold-equivalent ounces (GEOs), compared with the previously forecast 15 000 to 20 000 GEOs.
Gold Fields cautioned that the production outlook for next year had also been impacted and would fall in the range of 400 000 to 430 000 GEOs, from the previously forecast 500 000 GEOs.
However, should the delay be longer and first gold is only produced by the end of December, 2024’s output will be only 350 000 GEOs at an all-in cost (AIC) of $1 050/GEO.
Despite the downgrade in production for 2023 and 2024, steady state would be reached by the beginning of 2025. Production volumes for 2025 and 2026 remained unchanged at 600 000 GEOs.
Average output for the first six years of the mine life (2024 to 2029) would be 500 000 GEOs, and over the total mine life (2024 to 2033), it averages at 355 000 GEOs.
The project's AIC would average at $700/GEO for the first six years and $780/oz for the total mine life.
Gold Fields, led by CEO Martin Preece, stressed that the Salares Norte remained a world-class project with a payback of less than three years at spot prices.
The company has upped the capital estimate by $20-million to $1.04-billion, owing to the capitalisation of costs following the later start date for first gold.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation