Canadian Yamana mining company confirms lower-cost expansion plans in Brazil’s Bahia state
RIO DE JANEIRO, BRAZIL – Canadian mining company Yamana Gold has completed tests at its Jacobina gold mine complex in Bahia, the results of which exceeded expectations for a cost-efficient production increase planned for the coming years, the company’s global CEO Peter Marrone said Friday.
The company plans to increase its annual production capacity to 230,000 ounces by the second half of 2023, from the 180,000 ounces currently produced, as part of the second stage of its expansion. Production of 8,500 tons per day will be enabled by this expansion.
After testing, the company managed to reduce the investments planned for the expansion between 2021 and 2023 by up to 70% to a range between US$15 million and US$20 million, from the US$57 million previously planned. A large share of investments will be committed in 2022.
The cost cut was achieved after tests showed that the ore processing plant can safely achieve a daily production rate of over 8,500 tons per day, making it unnecessary to build a new plant as had been planned. “The plant is much more efficient than we initially perceived,” Marrone said.
Currently Brazil’s 3rd largest gold producer, second only to Kinross and AngloGold Ashanti, according to data from the Brazilian Mining Institute (IBRAM), Yamana has undergone significant expansion of its activities in Brazil in recent years.
In 2014 Yamana launched an important initiative to unlock mine potential – since then, gold production has more than doubled from 75,000 ounces in 2014 to 177,000 in 2020, Marrone stressed. This year’s expected production is 180,000 ounces.
In the 2nd quarter this year, Jacobina produced 7,200 tons per day, a 5% increase over the previous quarter, according to the company’s market report.
Marrone also highlighted that strong exploration results were achieved to support the expansion plan at the mines comprising the Jacobina complex: João Belo, Canavieiras and Morro do Vento.
“The results underscore Jacobina’s exceptional long-term growth potential and the ability to further extend the strategic life of the mine,” the company said in a statement.
The company is also planning a 3rd expansion phase to 10,000 tons per day, whose engineering will advance in parallel with phase 2 and the feasibility study could be completed by 2023. The plan is to start commissioning this future phase in 2027.
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
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