Hudbay Minerals expects to resume full copper and zinc production in December at its 777 mine in Manitoba after completing its initial assessment of a skip hoist incident that occurred earlier in October, the mining company said Oct. 26.
A preliminary video inspection showed that only the headframe and the bottom of the mine shaft in the skip compartment sustained damage, which was minimal, the Toronto-based company said in a statement, adding that the structural integrity of the shaft does not appear to have been compromised by the incident.
Hudbay said it will still conduct a full, in-person inspection of the shaft and skip compartment in early November to fully assess any further damage.
"If it is confirmed there is no further damage beyond what has been identified to date, it is expected that the 777 shaft could resume full production in December at a repair cost that is not expected to exceed $5.0 million," Hudbay said.
The miner temporarily suspended operations at 777 on Oct. 11 after a skip detached from a hoist rope during routine maintenance and fell to the bottom of the mine shaft.
Until the full inspection is completed, Hudbay said underground mining activity at 777 has resumed at limited production levels from the mine's ramp access.
"While fourth-quarter production and sales volumes will be impacted, the company is implementing production mitigation plans and continues to expect the Manitoba business unit to achieve its full-year production and unit-cost guidance for 2020," Hudbay said.
According to the company's most recent production guidance, the region was expected to produce 18,000-22,000 mt of copper and 105,000-125,000 mt of zinc in 2020.
Hudbay's business unit in Manitoba also includes the Lalor mine and two ore concentrators. The Manitoba operations produced a combined 23,354 mt of copper and 119,106 mt of zinc in 2019.
Source: Platts |
