When mining at its Boroo mine in Mongolia was first suspended Centerra Gold (CG-T) had to contend with the possibility that its mining licences cold be revoked entirely.
Thankfully for the Toronto-based miner, that hasn’t materialized.
The company announced on July 27 that the government has lifted the suspension on its mining and milling operations and Centerra says it will have things back up to speed within a couple of days.
The operation of its heap leach operation, however, remains in limbo. That’s because the company has yet to obtain its final operating permit for heap leaching, and company spokesman John Pearson doesn’t have a timeline for when that might happen.
Centerra had been producing ore from the leach pad earlier this year under a temporary mining licence, and 40,000 oz. of Boroo’s forecasted 160,000 to 170,000 oz. gold production was slated to come from the pad.
But a labour strike in late May and then the suspension of mining and milling operations got in the way of the permitting process.
With the labour strike resolved in mid-June and the suspension now lifted, Centerra can focus on getting the heap leach permit issue resolved.
The company was ordered to suspend operations at Boroo on June 12 and Mongolian authorities at the time said the suspension would last for up to three months.
The initial suspension came shortly after the State Specialized Inspection Agency visited the mine site and issued a report back to the government.
The government alleged there were issues with record keeping, incorrect land use, and improper operating procedures. Pearson says all of those issues have been rectified and resolved.
In Toronto on July 27 the company’s shares were up 7% or 41¢ to $6.61 on 335,000 shares traded.
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