Narok-based gold miner to close old plant in expansion
6 months ago, 23 Maý 16:40
Narok-based gold miner operated by UK’s Goldplat says it will close one of its original plants at its Kilimapesa mine in Narok, following the successful installation and subsequent second-stage expansion of a new processing factory.
Goldplat chief executive Gerard Kisbey-Green said the new plant, which is processing around 5,000 tonnes a month, is now established enough that Goldplat can continue running the plant as its sole facility.
“This will have a positive effect on profitability and help ensure we operate a more robust operation moving forward,” Mr Kisbey-Green said in a statement.
He said the fine material currently being processed through its incumbent plant will be sent to plant two, where it will be directly processed, bypassing the milling process, and increasing throughput with an overall improvement in the margin per ounce recovered.
Because of the closure, Goldplat said there would be an initial reduction in production during the last quarter, which would result in below 5,000 ounces output. However, it added, the changes would be reflected in the results for the quarter due to the lower production costs per ounce at its second plant.
Further cost savings will also be achieved through the restructuring of labour, although the closure of the plant will not result in a significant reduction in employees as they will be re-assigned to other positions at new factory and at the mine where possible.
The previously reported planned stage three expansion at its second plant will be undertaken on a modular basis, as and when finances allow, it added.
The multinational has invested more than Sh30 million to increase production in its Kenyan operations over the past two years, signalling confidence about its prospects.
Category: business news lifestyle economy markets opinion corporate