Egypt-focused gold miner Centamin (TSX: CEE; LSE: CEY) has outlined a three-year plan designed to cut costs and boost efficiencies at its Sukari mine, which has been hit in the past two years by operational issues and under-investment.
The company said it would spend US$595 million to increase waste stripping at Sukari, which is Egypt’s sole gold-exporting mine and the first large-scale modern gold operation in the North African nation.
Capital Limited, the company that won the open-pit waste mining contract, will provide the extraction process service that helps miners access higher grade ore over a period of four years.
“The winning of the tender for the Sukari open-pit waste mining contract is a significant milestone for Capital – it is the largest contract win for the group since inception, adds substantial scale to our mining services division, as well as providing revenue diversification from our drilling services business,” Executive chairman Jamie Boyton said in a separate statement.
Centamin’s new plan would allow Sukari to produce between 450,000-500,000 ounces of gold at an all-in sustaining cost of between US$800-$900 per oz. from 2024 onwards.
The miner lowered guidance for 2020 in October after stability issues at the mine’s west wall forced the company to halt mining in the high-grade zone.
Sukari contributes up to US$900 million a year to Egypt’s gross domestic product.
This article first appeared in MINING.com, part of Glacier Resource Innovation Group.