Polyus raises production guidance, targets 2.8Moz by 2019

JOHANNESBURG (miningweekly.com) – Russia’s largest gold miner Polyus has adjusted its production guidance for 2017 to 2019 and is now targeting 2.8-million ounces by 2019, compared with an earlier plan of producing 2.7-million ounces by 2020.

Polyus, which on Monday also announced its return to the LSE after delisting in 2015 amid sanctions imposed by the West over Russia’s annexation of Crimea, said it would produce between 2.075-million ounces and 2.125-million ounces in 2017, which would increase to between 2.35-million ounces and 2.40-million ounces in 2018.

“Our growth pipeline is well-balanced and is composed of a set of highly attractive seven brownfield projects and the Natalka greenfield project at a very advanced stage,” CEO Pavel Grachev said in a statement.

Polyus upgraded its production guidance on the basis that most of its brownfield development projects would be completed this year and that the Natalka project, in Magadan Oblast, would be commissioned by the end of the year.

Construction works at Natalka were progressing well and the company reported that early precommissioning works were well advanced. The primary crusher, the main semi-autogenous grinding mill and the main ball mill had undergone a successful trail run. The company had also finalised delivery of all processing equipment and said that the installation of gravity concentrators and electrowinning cells had been completed.  Polyus said that the construction of power facilities and auxiliary infrastructure was ongoing.

Following a ramp-up period, Natalka, which produced 100 000 oz during a pilot operation last year, would produce between 420 000 oz/y and 470 000 oz/y.