Gold production was stopped at the Laos mine in December 2013 due to the declining ore reserves and reduced margins
The Sepon mine in Laos has restarted gold production. (Credit: Pixabay/PublicDomainPictures)
China’s Chifeng Jilong Gold Mining has restarted gold production from its Sepon mine located in Laos, after a gap of nearly six and a half years.
The Sepon mine’s previous owner MMG ceased gold production at the site in December 2013 owing to the declining ore reserves and reduced margins.
However, the production has been restarted by Chifeng Jilong at the Sepon mine in Laos three months ahead of schedule, as the gold prices reached a seven-year high in April 2020.
Chifeng Jilong was quoted by Reuters as saying in a company statement: “It is estimated that finished gold can be produced in early June.”
Production at Sepon mine in Laos to reach up to 1.6 tonnes of gold in 2020
In 2020, Chifeng Jilong is planning to produce 1-1.6 tonnes of gold from Sepon mine, and increase the production to 7 tonnes in 2021, Kevin Chen, the company’s vice general manager, told the publication.
Chifeng Jilong had acquired 90% stake in Lane Xang Minerals, which operates the Sepon mine, from MMG in a deal worth $275m in 2018.
Commenting on the deal, MMG CEO Geoffrey Gao had earlier said that the sale forms part of its plan to create a portfolio of long life, high quality, base metal mining assets.
Gao added: “Sepon’s current copper operation has a projected mine life to 2020 with potential to extend this through a primary gold operation.
“The sale of Sepon secures a new life for the asset as it transitions from copper to gold production.”
Australian firm Ausenco provided engineering, procurement, construction and project management services for the Sepon gold project.