flotation plant to raise lihir output.

Article from the post courier.

Flotation plant to raise Lihir output
MINING company Lihir Gold Limited will expect an increase in gold production output after its board of directors approved the installation of the flotation plant.
The approval would see the company’s production increase to nearly 140,000 ounces of gold every year.
Managing director Neil Swan said the new facility would also lead to step up change in Lihir Gold Limited’s production profile.
“This decision is the culmination of a rigorous technical and economic assessment,” Mr Swan said.
“It demonstrates the company’s continuing focus on seeking ways to deliver value to the shareholders by accelerating gold production and reducing unit costs.”
He said the three million tonne capacity plant would produce a higher-grade gold concentrate and provide a second enhanced source of ore feed to the existing autoclaves. “On the basis of current mine plans, the flotation plant is expected to lead to production increases of around 140,000 ounces of gold per annum on average over its first seven years of operation, at significantly lower marginal cost,” he said.
The installation of the flotation plant would cost Lihir Gold Limited between $US150 million (about K488 million) and $US160 million (about K521 million) and will be financed through a debt which the company would repay over a period of time.
The project remains subject to the conclusion of satisfactory debt financing arrangements and regulatory approvals in Papua New Guinea.
Mr Swan said the company hoped to start construction of the flotation plant later this year in order for the plant to be operational in the first quarter of 2007.
Lihir Gold Limited is the owner and developer of one of the world’s premier gold mines, located on Lihir Island in the New Ireland province of PNG.
The company boasts one of the world’s largest gold resources and ranks among the top gold producers in the world.
It offers exciting and challenging opportunities for all stakeholders.