Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Northern Star Resources (ASX: NST) has temporarily halted gold production at its Pogo operation in Alaska while repairs are underway on the ball mill motor. Located 145 km southeast of Fairbanks, the Pogo operation covers around 17,080 hectares of mining and exploration leases.
Towards the end of a routine mill shutdown that commenced last week, the team discovered damage to the ball mill motor at Pogo which tripped during restart, Northern Star said in a news release on Wednesday.
At this stage, the company expects repair work to the ball mill motor to take up to six weeks. Cost management initiatives have been introduced and team efforts have been prioritized towards the mill repair so that gold production at Pogo can safely resume as soon as possible, it added.
As a result of this unplanned motor repair, Pogo’s production is likely impacted by 20,000-40,000 ounces in 2023. However, Northern Star’s full-year production guidance remains unchanged.
The Pogo mine entered commercial production in 2006 and was later acquired by the company in 2018. The deposit currently contains probable reserves totalling 1.8 million oz. from 6.6 million tonnes grading 8.5 g/t gold.
