SUNBIZ

VGML reports $6.2M loss from Winston

The Vatukoula Gold Mine Limited(VGML) has reported a total loss of $6.2 million since Cyclone Winston of February 20. Director Yeung Ng told the Fiji Sun yesterday that VGML have
14 Mar 2016 10:20
VGML reports $6.2M loss from Winston
Staff quarters damaged. Photo: VATUKOULA GOLD MINES LIMITED

The Vatukoula Gold Mine Limited(VGML) has reported a total loss of $6.2 million since Cyclone Winston of February 20.

Director Yeung Ng told the Fiji Sun yesterday that VGML have made assessment and have incurred a production loss of $FJ3.6 million.

The countires biggest mine also incurred close to $1.9 million loss in surface building and the mine site infrastructure is around $0.7million.

Mr Yeung said as per government damage regulations, the mine was fully shut down at 4pm that afternoon when cyclone Winston approached.

“In production we have barely recovered. From early last week we have started with majority of the staff returning to work,” he said.

“All these weeks we were producing 800 to 1000 ounces of gold. 800 ounces with gold price of $12,000 cost $US1million so every week we have lost in the cash flow. We thought we would do better but did not anticipate the cyclone.

“We expected the miners to resume work but they stayed home due to their homes suffered.Before they were all staying home due to the damages they faced after the cyclone.

Surface building loss

“All surfaces building including workshop, office, warehouse, staff quarters, have suffered different degree losses,” he said.

“The Vatukoula processing plant (where Ore is placed in the process to extract gold) suffered biggest damage, the workshop and office roof was wholly collapsed which requires $1 million to be fully repaired as preliminary estimated. Additionally $0.9million needed to repair other department’s workshop, office and community quarters.”

Mine site infrastructure

“The mine site power and water supply, and communication line have been destroyed, road it interrupted, many trees are uprooted, ornamental trees and fruit trees are all destroyed,” Mr Yeung said.

He said there was a need to spend money to clean communities and repair damaged infrastructure by $7 million.

After the storm

He said after the cyclone they immediately initiated an emergency rescue and disaster relief command, splitting three groups with the rescue work.

“One team was repairing the power supply to resume the power to avoid underground flooding and second group was working on loss statistic, making materials procuments to actively resume productions as soon as possible.The third group was paying visit to our employees suffered from loss to help them to come to back work as soon as possible.”

He said some part of the Vatukoula community have received power supply and water supply while for some it will take time.

Meanwhile, VGML will be making a donation of $100, 000 to the Prime Minister Relief Fund this week.

“Whilst VGML trusts that it’s most effective contribution to Fiji’s rehabilitation is to continue to sustain gold production and provide employment for 1400 workers,” he said.

“This recognises that all efforts are necessary given the scale of destruction, hence the decision to donate to the PM’s ReliefFund.”

Feedback:  waisean@fijisun.com.fj

 



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