MMG Kinsevere’s annual production saw a 12% increase in 2014, setting new annual copper production and sales records despite the global copper rout.
Kinsevere’s production for the year totalled 69 624 tonnes of copper cathode, which far exceeded the production guidance of 63 000 to 68 000 tonnes. Costs remained within guidance as well.
In the fourth quarter alone, Kinsevere’s production rose 17% from the same period in 2013, with production of 18 897 tonnes of copper. Mining rates also increased by 17% compared to the previous quarter, while mill throughput rose 6%.
Hard work pays off
Kinsevere General Manager Miles Naude said that the outstanding result was a reflection of the operation’s dedicated team and continuing focus on operational excellence. “Our team has worked diligently throughout 2014 to sustainably increase mining and milling rates.
“Such an outstanding result – a 12% increase in production during just the second full year of MMG ownership of Kinsevere – is a reflection of these efforts. We expect to maintain this performance, with MMG announcing 2015 production guidance for Kinsevere of 65 000 to 70 000 tonnes of copper cathode.”
Kinsevere’s record performance was supported by sustained improvements in the availability of grid-sourced power from local and neighbouring country power providers. Approximately 34% of power requirements were met via diesel generation during 2014, down from approximately 57% during 2013.
Naude said that MMG was continuing to work with industry, government and power developers and suppliers regarding long-term solutions to energy availability and stability in the region.
Copper price collapse
Kinsevere’s success comes at a time where the copper price has dropped 8.6% to the lowest level in over 12 years, leading a collapse in commodity prices. The price is being driven down by reduced energy costs, demand weakness and poor economic data from China, according to Goldman Sachs Group.