Petropavlovsk Extending Development Period for Pressure Oxidation Hub
Extending the development schedule for the pressure oxidation hub allows Petropavlovsk to defer $150 million in expenditures that would have been incurred in 2013.
Petropavlovsk’s pressure oxidation hub is designed to process flotation concentrates of refractory ores from its Pioneer and Malomir mines. The company has more than 10 million oz of gold in its reserve base, and about half of this total is in refractory ores at Malomir and Pioneer. The two mines also have oxidized, non-refractory ores.
Outotec has the contract for project management services for the pressure oxidation hub project, including detailed technical design of the pressure oxidation plant, equipment selection, oversight of equipment manufacturing, installation and commissioning.
Petropavlovsk Chairman Peter Hambro said, “Slowing down the development of the pressure oxidation project does not affect our production outlook for 2013 and 2014 due to recent successes in the company’s exploration program, especially at Pioneer and Albyn. The discovery of new, non-refractory resources next to existing production facilities has validated the group’s long-term strategy of investment in a comprehensive exploration program in areas with well-known geology and excellent infrastructure.
“The group is still committed to completing the pressure oxidation hub and considers it a long-term strategic project that will provide the basis for further profitable growth,” Hambro said.