Centerra uncertain on timing for Mongolia project go-ahead
TORONTO (miningweekly.com) - Toronto-based Centerra Gold can't tell how long it might be before the company gets permission to start commissioning its Gatsuurt project in Mongolia, spokesperson John Pearson said on Friday.
Centerra said earlier in the day it will cut about 250 jobs in Mongolia when mining at its Boroo operation ends later this month, as the plan had been for those workers to be redeployed at the now-delayed Gatsuurt, about 50 km away.
The company is waiting to hear how the project will be affected by a new water and forests law, which has been approved in Mongolia, but has yet to be enacted.
The final permitting for Gatsuurt will not be approved until the uncertainty under the new law is dealt with.
"It is very hard to predict" how long that might take, Pearson said in a telephone interview.
The company plans to keep capital spending on the Gatsuurt project "minimal" until the approvals are received, CEO Steve Lang said earlier on a conference call.
However, once the green light is received, production from Gatsuurt should start up reasonably quickly, he said.
"It's really a very short timeline. I think we would immediately look to rehire the employees, I suspect we could be mining within a week," Lang said.
Even including the accumulation of some stockpile material at both the mine and plant, production from Gatsuurt ore could begin "in just a few weeks", he said.
In the meantime, Centerra will continue to process stockpiled ore at Boroo after mining ends at the end of this month.
"I believe we have enough stockpiled ore at Boroo to take us through at least mid-next year," Lang said.
Other options include the processing of refractory and low-grade ore which has been stockpiled.
Centerra's other operation is the Kumtor mine, in Kyrgyzstan.
The company reported lower third-quarter earnings and production on Friday, but maintained its full-year output forecast because of plans to mine high-grade zones at Kumtor during the last three months of the year.
Edited by: Liezel Hill
Centerra said earlier in the day it will cut about 250 jobs in Mongolia when mining at its Boroo operation ends later this month, as the plan had been for those workers to be redeployed at the now-delayed Gatsuurt, about 50 km away.
The company is waiting to hear how the project will be affected by a new water and forests law, which has been approved in Mongolia, but has yet to be enacted.
The final permitting for Gatsuurt will not be approved until the uncertainty under the new law is dealt with.
"It is very hard to predict" how long that might take, Pearson said in a telephone interview.
The company plans to keep capital spending on the Gatsuurt project "minimal" until the approvals are received, CEO Steve Lang said earlier on a conference call.
However, once the green light is received, production from Gatsuurt should start up reasonably quickly, he said.
"It's really a very short timeline. I think we would immediately look to rehire the employees, I suspect we could be mining within a week," Lang said.
Even including the accumulation of some stockpile material at both the mine and plant, production from Gatsuurt ore could begin "in just a few weeks", he said.
In the meantime, Centerra will continue to process stockpiled ore at Boroo after mining ends at the end of this month.
"I believe we have enough stockpiled ore at Boroo to take us through at least mid-next year," Lang said.
Other options include the processing of refractory and low-grade ore which has been stockpiled.
Centerra's other operation is the Kumtor mine, in Kyrgyzstan.
The company reported lower third-quarter earnings and production on Friday, but maintained its full-year output forecast because of plans to mine high-grade zones at Kumtor during the last three months of the year.
Edited by: Liezel Hill
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