Gold Fields, one of the world’s largest gold miners, has significantly lowered its full-year output guidance due to issues at its Salares Norte project which was struck with severe winter conditions in Chile, a Southern hemisphere country.
The company has lowered its yearly gold production forecast to 2.20 - 2.30 million ounces from 2.33 - 2.43 million ounces previously, registering a projected drop of 130,000 ounces.
According to the company, a production ramp-up at Salares Norte has been negatively impacted by the early onset of winter which resulted in the freezing of material in the piping of the process plant and its temporary shutdown.
The greater than planned impact of these events and the extended duration of winter will make the commissioning and ramp-up phase more challenging, creating uncertainty on production levels during the winter months, the company added. However, total project capital costs remain in line with guidance of $1.18 - $1.2-billion.
“Calendar year 2024 production guidance for the project is therefore being revised down from the previously indicated gold-equivalent ounces range of 220,000 - 240,000 ounces, to 90,000 - 180,000 ounces,” - Gold Fields reported.
Previously, Chile’s Superintendence of Environment (SMA) has issued a suspension notice for a part of the Salares Norte project due to a possible destruction of chinchilla habitat. The company was ordered to provide a rescue and relocation plan which included endoscopic probe searches and night camera recordings. The company may proceed with rescue and relocation of the rodents after winter is over.
Theodor Lisovoy, Editor in Chief, Rough&Polished
