Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Avnel to halt production at Mali gold mine for 18 months in June

Published 2017-02-16, 04:31 a/m
© Reuters.  Avnel to halt production at Mali gold mine for 18 months in June
AVK
-

BAMAKO, Feb 16 (Reuters) - Canada's Avnel Gold AVK.TO will suspend production at its loss-making Kalana underground mine in Mali for 18 months from June to expand its operations and build a new processing plant, the West African nation's mines ministry said.

Production will restart in January 2019 at a larger, open-pit mine with estimated gold reserves of 1.96 million ounces.

The Malian state holds a 20 percent stake in the Somika venture, which has operated the Kalana mine since 2003, with the remainder held by Avnel.

The mine has not been profitable for years due to a depletion of its initial reserves and a decline in gold prices, but Avnel kept it open in order to avoiding laying off workers, the company has previously said.

"The company has informed us that it will stop production in June and start construction of a new factory in July which will last a year and a half ... re-starting production in January 2019," said Yaya Djire, head of the ministry's mines division.

The new mine will produce 148,000 ounces of gold a year for the first five years of its 18-year lifespan and will cost 73 billion CFA francs ($117 million), Djire said.

($1 = 622.3400 CFA francs)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.