Centerra forecasts lower output in 2011
TORONTO (miningweekly.com) – TSX-listed Centerra Gold produced 678 941 oz of gold last year, including 249 866 oz in the fourth quarter, but expects output in 2011 will be lower because of delayed permitting approvals in Mongolia.
The company had forecast production of 640 000 oz to 700 000 oz in 2010.
Centerra owns the Kumtor mine, in Kyrgyzstan, and the Gatsuurt project in Mongolia. The firm ended operations at another Mongolian mine, Boroo, in November and had planned to replace the production with ore from Gatsuurt, which is located about 50 km away.
However, the firm is still waiting to hear how the project will be affected by a new water and forests law enacted in Mongolia and the final permitting for Gatsuurt will not be approved until the uncertainty under the new law is dealt with.
The company expects to produce between 600 000 oz and 650 000 oz of gold this year, including 550 000 to 600 000 oz from Kumtor, and 50 000 oz from processing stockpiled Boroo ore.
“We had another strong fourth quarter, despite a 10-day shutdown at Kumtor, enabling the company to achieve its 2010 production guidance,” CEO Steve Lang said in a statement.
The company is continuing to look for additional projects and aims to annual gold production to 1,5-million ounces, Lang said. Centerra has budgeted $34-million for exploration this year, up from $30-million in 2010, and expects capital expenditure will be $213-million, including $38-million of sustaining capital and $175-million of growth capital.
The company had forecast production of 640 000 oz to 700 000 oz in 2010.
Centerra owns the Kumtor mine, in Kyrgyzstan, and the Gatsuurt project in Mongolia. The firm ended operations at another Mongolian mine, Boroo, in November and had planned to replace the production with ore from Gatsuurt, which is located about 50 km away.
However, the firm is still waiting to hear how the project will be affected by a new water and forests law enacted in Mongolia and the final permitting for Gatsuurt will not be approved until the uncertainty under the new law is dealt with.
The company expects to produce between 600 000 oz and 650 000 oz of gold this year, including 550 000 to 600 000 oz from Kumtor, and 50 000 oz from processing stockpiled Boroo ore.
“We had another strong fourth quarter, despite a 10-day shutdown at Kumtor, enabling the company to achieve its 2010 production guidance,” CEO Steve Lang said in a statement.
The company is continuing to look for additional projects and aims to annual gold production to 1,5-million ounces, Lang said. Centerra has budgeted $34-million for exploration this year, up from $30-million in 2010, and expects capital expenditure will be $213-million, including $38-million of sustaining capital and $175-million of growth capital.
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