Nordgold invests $70 million into Guinea’s Lefa mine
Michael Pinson, News Editor
2 May 2019, 3:37 p.m.
Gold miners Nordgold (Nord Gold S.E) have reported $70 million investment into the Lefa mine in Guinea for 2018. The ‘significant investment programme’ is intended to improve efficiencies at the site, as well as extending the mine's lifespan.
Image courtesy of google maps.
The Russian-owned company operates sites in Burkina Faso and Guinea, as well as domestically in Russia and Kazakhstan. Nordgold purchased the Lefa mine in 2010 and since acquiring the site have invested almost $1 billion into both it and Guinea itself.
The 2018 figure represents a 45% increase in spending from $48 million the previous year. In positive news for the site’s future, Nordgold also announced plans to increase its spending year-on-year by 15%. For 2019 they have predicted investment will reach $80 million.
Alejandro Rodriguez, Acting General Manager of the Lefa mine, said in a press statement:
“We remain committed to Guinea and to driving performance at the Lefa mine. This intensive investment programme will put us in the best position to maximise the value of this major asset. Alongside the investment into equipment and facilities, we will also maintain our strong support of the local communities. The investment into staff development programmes, but also education and health facilities, will bring major benefits to the area. Lefa is an important asset, and Nordgold will continue to invest in exploration to extend its life of mine, and to sustain the current production level.”
In a boost to production at the site, road access to a new satellite pit in the ‘Kassa Kassa’ mining area has finally been completed, granting easy access for future mining efforts.
Russia is currently the third largest gold producer in the world, with output totalling 297.3 tonnes for 2018 – up from 272.3 tonnes the year before. Russia and China have both pursued investment in African gold mines, and mining projects, heavily in the past decade; a pursuit which has coincided with the two mining giants residing in the top three gold producers in the world, but also in the top five central bank gold reserves.