Rédaction Africa Links 24 with Ed Stoddard
Published on 2024-04-02 18:01:09
Salares Norte, a gold mining project, has reached a significant milestone as it has started producing gold and the rodents inhabiting the area are being relocated. This achievement was announced by Gold Fields on Tuesday, marking a crucial step for the asset that the company hopes will bring in substantial revenue. The project, with an estimated cost of $1.2 billion, is expected to pay back in less than three years, considering the current high gold prices in the market.
The journey from discovery to exploration to production at Salares Norte has been a long one, spanning over 13 years. Finally, on Thursday, 28 March 2024, the project delivered its first gold, initiating the production phase. The anticipated average annual production for the first five years, from 2025 to 2029, is projected to reach 485,000 ounces. Alongside the commencement of gold production, the operation to relocate the chinchillas, dubbed “Operation Chinchilla,” has also restarted.
“The mine has received the permit to recommence with the capture and relocation of chinchillas from future mining areas at Salares Norte. The program, carried out and supervised by independent environmental experts, began in February with the monitoring of the animals,” Gold Fields stated. However, the rodent relocation has faced challenges and criticism from animal welfare activists. The initial attempt in 2020 was halted by Chilean authorities after two out of the first four captured chinchillas died during the process.
Despite the gold production and ongoing chinchilla relocation efforts, Gold Fields faced setbacks in the first quarter of 2024 at its operations in Peru, Australia, and South Africa. Operational challenges at the South Deep mine in South Africa, as well as weather-related events in Australia and Peru, impacted the company’s production targets for the quarter. The company also noted a fatality at the South Deep mine earlier in the year, affecting its operational momentum.
Gold Fields emphasized the importance of addressing environmental concerns and public opinion, especially in the current global climate with increasingly extreme weather patterns. The company remains committed to executing Operation Chinchilla correctly this time around. Despite the challenges faced in the first quarter, Gold Fields maintained its production guidance for the full year, aiming to produce between 2.33 million and 2.43 million ounces of gold in 2024.
In conclusion, the production of gold at Salares Norte marks a significant achievement for Gold Fields, despite the hurdles encountered during the process. As the mining industry navigates through various challenges, including environmental considerations and operational issues, companies like Gold Fields strive to maintain production targets while upholding responsible practices. With the gold market at high prices, mining companies are eager to maximize production and capitalize on the lucrative opportunities available.
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