Kazakhstan-based mining and metallurgical company Kazzinc reported a sharp decline in precious and base metals production during the first half of the year. Gold output from the company’s own ore fell by 47%, while production of zinc, lead, and copper also declined. Silver was the only major metal to record year-on-year growth.
The figures were published by inbusiness.kz, citing the half-year financial report of Glencore, Kazzinc’s majority shareholder. Gold production was hit particularly hard. Output from the company’s own ore dropped to 149,000 ounces, compared with 281,000 ounces in the same period last year—a decline of nearly 50%. Total gold production, including material processed under tolling agreements, decreased by 36% to 311,000 ounces.
The company attributed the decline primarily to lower gold grades at the Altyntau Kokshetau operation following the transition to a new mining level. Production was also affected by the reconstruction of one of the site’s two concentrators, which temporarily reduced processing capacity.
Zinc production fell 12% to 87,600 tonnes, while lead output declined 31% to 16,000 tonnes. Copper production decreased 4% to 7,400 tonnes. For both zinc and lead, the shortage of high-grade concentrates required for blending further constrained output.
Against this weaker overall performance, silver remained relatively resilient. Production increased 1% year-on-year to 1.666 million ounces.
Kazzinc’s half-year results highlight a common challenge faced by mature mining operations: declining ore grades combined with the need to modernize processing infrastructure. As the company navigates lower-grade ore and ongoing plant upgrades, shareholders are seeing double-digit declines across several of its key production indicators.
Source: inbusiness.kz
Image: Kazzinc
