Lundin Gold company exceeded its expectations for gold production at the project fruit of the northlocated in Zamora Chinchipe, in 2021. Last year the Canadian mining company managed to produce 428,514 ounces of gold, almost double what it produced in 2020 (242,400 ounces). This represents approximately 750 million dollars in exports.
This increase in production was due to overcoming the problems caused by the pandemic, since in 2020 the mine was closed for three months. In addition, an expansion of the processing capacity of the plant was carried out. They currently work with “strict” biosafety protocols, said Nathan Monash, the company’s Vice President of Corporate Sustainability, in a virtual meeting he had with journalists from EL UNIVERSO.
He pointed out that the presence of the mining company has contributed to the country and the Amazon province in the creation of adequate employment, the increase in tax collection and direct and indirect sales related to the company.
What is the reason for the increase in gold production compared to last year?
We project for 2021 between 380,000 and 420,000 ounces. In other words, the 428,514 ounces achieved represent an increase of 2% from what was expected. This is given for two reasons, the first is that 2020 was not a full year of production, since the mine was operated for nine months (the mine was closed due to the pandemic for three months) and during this period the mine did not it was at full capacity.
The second reason is because we have implemented a project to increase the capacity of the plant. Initially 3,500 tons of rock were processed per day and now it is 4,200. Capacity increased by 20%.
What are the projections for 2022?
We expect to exceed what has been done in 2021. We estimate that production will be between 405,000 and 445,000 ounces of gold. Now, we also anticipate an increase in production costs due to global inflation. We project this item between $860 and $930 for each ounce of gold produced.
Fruta del Norte, in 2020, represented 82% of national gold production and represented 45% of mining exports. We estimate that in the entire operation phase, which runs until 2034, between $8 billion and $8.8 billion will be contributed to national exports.
In addition, fiscal resources between $1.3 billion and $1.5 billion will be generated at the national level. Also, during the useful life of the mine, direct taxes will be generated to the Municipality of Yantzaza between $40 million and $44 million. In 2021 alone, Lundin Gold generated direct and indirect benefits for the State of approximately $140 million.
To which countries are you exporting the gold?
We export two products. Doré (an impure and unrefined mixture of gold and other metals such as silver), which we send to Europe so that pure gold ingots are produced there. The second product is gold concentrate, a kind of dark-colored earth that has a high gold concentration, that is, about 150 grams of gold per ton. We export this in containers and it goes to countries like Finland, Germany, Bulgaria and continents like Asia.
Exports amounted to approximately $750 million in 2021 (the figure is obtained by multiplying the total number of ounces extracted by the international cost of an ounce of gold that exceeds $1,800)
How many workers does Lundin Gold currently have?
As of December 2021, 1,690 people hired directly and 757 people through contractors. 50% of the payroll are people from Zamora Chinchipe and 92% are from Ecuador.
How has the pandemic affected you? In 2020 the Ecuadorian economy contracted by almost 8%…
The pandemic was a strong blow for everyone, but we know that we are an important actor in Zamora Chinchipe and that is why we work on issues that benefit the community. We have a sustainability strategy where we identify what the priorities are for us and the community. This strategy guides our community investment.
A program that comes out of this strategy is called We are connected, which aims to improve the connectivity of the communities around Fruta del Norte because the pandemic sharpened this issue in an important way. We saw that the children in the area were not being taught by their teachers. We provided tablets to students from four schools in the Los Encuentros parish and the communities of Playón and Río Blanco. 1,545 tablets were delivered.
We also provided a free internet point to 22 communities in the Los Encuentros parish. They have good bandwidth. The investment of all this amounts to $770,000. The banks that have financed the construction of Fruta del Norte have contributed financially to this program. (I)
Source: Eluniverso
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