JOHANNESBURG (miningweekly.com) – The poorly-performing Beatrix gold mine in the Free State would be back over the 100 000 oz a quarter mark in the future, Gold Fields CEO Nick Holland promised of the group’s problem child, the production of which slumped 25% in the March quarter.

Holland pointed out that Beatrix represented a “very substantial six-million-ounce orebody” and had been well capitalised.

Gold production at Beatrix decreased from 3 320 kg – or 106 700 oz – in the December quarter to 2 489 kg – or 80 000 ounces – in the March quarter, the only one of Gold Fields’ nine mines to report lower March-quarter production.

Holland said that much capital had been spent on shaft development at Beatrix’s principal No 3 shaft in particular.

“It's lower grade than the West Wits, but it’s shallow and lends itself to more productive mining,” Holland added.

He pointed out that some $2,7-billion a year was spent around the world in the gold sector on exploration to find only five-million ounces each year.

Beatrix on its own was even bigger, at six-million-ounces-plus, “and it's in our own backyard”.

He said that Beatrix had tremendous potential in Gold Fields.

“It had a poor quarter, but the important thing is that steps have been taken to rectify the situation and I have no doubt that Beatrix will restore itself to a very significant contributor to the Gold Fields portfolio.

“Even with the poor performance, it still managed to make money, so imagine what it could do if we could get the production machine going,” Holland said.

Gold Fields South African operations head Vishnu Pillay promised 2 900 kg in the next quarter.

“Frankly, 2 900 kg a quarter is nowhere near the potential of Beatrix, which should be doing at least 10% to 15% better than that.

“Long-term, we want to get this operation to something around 3 300 kg a quarter, which is 900 kg up from where it is now. That will make a massive difference.

“These operations respond very positively to the extra ounce. The marginal cost to the marginal benefit of every ounce produced is substantial. That’s why we are focusing on getting the production up here,” said Holland.

Pillay said that the company had had a significant problem with volume delivery and quality at Beatrix, with Beatrix No 3 shaft being impacted on by necessary safety measures and the introduction of secondary support.

“Our philosophy of building our operations to reduce accidents will impact production, but I am pleased to say that, in the last two months, there has been an uptick in production at all of the Beatrix shafts and an increase in gold production.

“I don’t think the outcome of the last quarter should be taken as the norm. We have to acknowledge that when we do find things that are out of kilter with our philosophy, we have to ensure that these operations come back into line.

“We've made certain management changes, brought back a seasoned mining engineer to head up the operation.

“Our outlook for the quarter is 2 900 kg, which is a substantial improvement and I have no doubt that we will have that production going forward” Pillay said.

March quarter tons milled at Beatrix decreased from 798 000 t to 629 000 t as a result of lower volumes achieved across the three main production shafts owing to limited flexibility, hoisting constraints as a result of a number of stoppages owing to electronic problems with No 3 shaft’s rock winder and a slow start-up after the
Christmas break.

Yield decreased from 4,2 g/t in the December quarter to 4,0 g/t for the March quarter, mainly as a result of an increase in stope width and lower values mined.

Unpaying panels have been stopped and grades are expected to improve.

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