Australian-Canadian OceanaGold Corp. is investing up to $50 million or nearly P2.8 billion this year to sustain operations and explore additional resources in its mining project in Kasibu, Nueva Vizcaya.
In a statement, OceanaGold said the capital investment in the Didipio gold and copper mine ranges between $35 million and $50 million or P1.93 billion to P2.75 billion for 2023.
The indicated investment was higher than the company’s capital expenditure of $22.8 million for running the Didipio mine site in the year prior.
OceanaGold president and CEO Gerard Bond said, “we will continue to invest in the exciting exploration opportunities across the business, with a focus on near-mine high return targets at Didipio, Haile and Wharekirauponga.”
A substantial portion of the investment totaling $20 million to $25 million (P1.1 billion to P1.37 billion) will go to general operations, followed by growth capital with $10 million to $15 million (P551.77 million to P827.66 million).
“Sustaining capital for the year includes a tailing storage facility lift and associated infrastructure plus improvements to on-site accommodation,” said the company.
OceanaGold is setting aside $3 million to $5 million for exploration and the remaining $4 million to $6 million will go to pre-strip and capitalized mining.
“Exploration at Didipio will focus on resource conversion drilling and continued definition drilling of the two new mineralized structures recently discovered outside of the current resource,” it added.
OceanaGold pegged this year’s Didipio mine output at 120,000 to 130,000 ounces of gold and 12,000 to 14,000 tonnes of copper, noting that gold and copper production “is expected to be evenly weighted throughout the year.”
In 2022, the Didipio mine site generated 113,198 ounces of gold and 14,361 tonnes of copper which OceanaGold noted was in line with their guidance.
During the period of October to December last year, Didipio operations generated 29,104 ounces of gold and 3,476 tonnes of copper.
“The fourth quarter was the second consecutive quarter in which underground mining operated at full target production rates,” OceanaGold noted.
Didipio mine site managed to complete its operational ramp-up ahead of schedule in the second quarter of 2022.
OceanaGold also estimated that Didipio mine’s all-in sustaining costs—the cost of maintaining current mining operations—reached $750 to $850 per ounce, higher than $637 per ounce previously.
It said this was mainly due to higher sustaining capital and grid supplied energy costs along with increases in consumables, labor and other costs as a result of inflation.
On a global scale, OceanaGold is projecting production to be variable over the course of 2023 and weighted more strongly to the first half of the year. INQ
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