Australian gold producer Unity Mining Limited has announced that it will be closing its Henty gold mine on the north coast of Tasmania by late 2015.
It comes after an operational review of the site by owner Unity Mining showed that that the best economic outcome for its shareholders was to focus on maximising cash generation through the recovery of the remaining higher confidence and higher margin reserves.
“Unfortunately, our significant commitment to exploration drilling within the Henty mine during the last twelve months has not been successful in adding significant additional gold ounces to the mine life, and as such, the mine will transition to care and maintenance in the second half of 2015,” Unity’s Managing Director & CEO Andrew McIlwain said in an ASX announcement.
“Coupled with the substantial improvements in the cost profile at Henty that have been achieved over the last six months, we are confident that the current mine plan will generate positive cash-flow over the remaining mine life.”
Henty commenced operation in 1996, with an initial mine plan of around four years. When Unity acquired Henty it had been in operation for 13 years, had produced around 1.2M oz of gold and was on a path to closure within six months.
Under Unity’s ownership, Henty has produced a further 250,000 oz gold and is expected to yield up to an additional 50,000 oz prior to the planned suspension of production in the second half of 2015.
According to the article on ABC, at least 150 workers are expected to lose their jobs between December and next June.