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Zijin expects full power to resume at Porgera within 6 to 8 weeks

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Zijin expects full power to resume at Porgera within 6 to 8 weeks

Just over three months after an earthquake cut power to the Porgera gold mine, putting a damper on production, Zijin Mining Group Co. Ltd. said that in early June, the supply of electricity to the mine had resumed to approximately 50% of pre-earthquake levels.

Zijin also said in its June 8 update that it expects full power to be restored within six to eight weeks.

The mine, which produced 495,000 ounces of gold in 2017, is 47.5% owned by Zijin and 47.5% owned by Barrick Gold Corp., with the balance held by the Papua New Guinea government and a private owner.

An earthquake damaged the mine's main source of power, the Hides Gas Station, on Feb. 26, forcing Zijin and Barrick to rely on diesel generators to run operations at much lower throughput rates and without the use of Porgera's autoclaves, which aid recovering of gold.

In the latest update, Zijin said processing at the plant had been running at half of the planned throughput rate and without power for autoclaves, at lower recoveries. The company did not specify how much lower recoveries have been at Porgera.

But now autoclaves are coming back online and the Hides Gas Station is supplying electricity.

Zijin said Porgera throughput rates will return to normal "once the power station reaches full capacity."

The update suggests Porgera is on track to meet Barrick's guidance for the mine. Barrick had guided in the first quarter that Porgera could be back at full capacity by the fourth quarter.

Barrick declined to comment on the update, noting the company does not consider the impact material. Barrick spokesperson Andy Lloyd added that Barrick would give an update on Porgera in its second-quarter results, due out in July.