UNDERGROUND

K92 pulls lucky number for Kainantu expansion

PNG gold mine to double its plant and mining capacity

 The Kainantu gold operation is located in the Eastern Highlands province of Papua New Guinea (PNG)

The Kainantu gold operation is located in the Eastern Highlands province of Papua New Guinea (PNG)

K92 Mining will boost capacity at the mine to 400,000t per year, which ups its average production by 120,000oz annually.

It will ramp up the expansion, calling for 60,000-75,000oz in 2019 and 115,000-125,000oz in 2020 under the plan; plant processing capacity is expected to rise to 400,000t/y by the December quarter of this year.

Additionally, K92 said, the mine's underground production will increase over an 18-month period toward a design capacity of 400,000t/y by 3Q20.

The operator said the expansion's capex price tag for this year will include US$12 million in expansion capital, US$8 million in sustaining capital and US$10 million in capital development.

News of the expansion comes after K92 recently acquired a pair of Cat AD45 low-profile trucks for underground operations. The first should arrive on-site by the end of this month, with the other to follow shortly after.

"This expansion will double plant and mining capacity and increase production to an average of over 120,000oz AuEq per annum over the next 13 years, with potentially more to come as we ramp up our exploration efforts," CEO John Lewins said, adding that the PEA revealed capability of producing almost 650,000oz of gold and 10,000t of copper over the next five years and more than 1.3 million oz gold and 60,000t of copper over a 13-year life.

K92 said it will also increase its workforce numbers from 650 at current to 750 by the end of the year, and again to 800 by the end of next year. Of the job positions, it said, 96% will be filled by PNG nationals.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production