MMG’s Laos operating company MMG LXML Sepon achieved quarterly records in processing, production and sales for the December quarter of 2014. The Sepon operation produced 24,055 tonnes of copper cathode, 11% higher than the previous quarter due to record tonnes milled and consistent operations.
This resulted in total 2014 production of 88,541 tonnes of copper cathode, which was within the company's annual production guidance of 88,000-93,000 tonnes.
MMG’s Sepon general manager Suresh Vadnagra, who secured the role in November 2014, said he was pleased with the strong production achieved by the team at LXML Sepon. “Our challenge for 2015 will be to continue to deliver solid output while the Sepon mine plan transitions to processing lower grade, harder high carbonate, ores. We have already made adjustments to the plant to maximize recovery of this ore and assist in offsetting lower feed grades.”
While these plant adjustments have resulted in increased consumption of acid and grinding media, Sepon achieved C1 costs of US$1.00 per pound, which was within guidance of US$0.95-$1.05. Consistent with declining ore grades, MMG says the operation expects to produce 80,000-87,000 tonnes of copper in 2015 at a C1 cost of US$1.10-$1.20 per pound.
Sepon mine is in the Savannakhet Province and is operated by MMG Limited, an international base metals miner headquartered in Melbourne, Australia, and listed on the Hong Kong Stock Exchange.