MMG’s Golden Grove may be for sale

MMG has confirmed it is open to the sale of its Golden Grove mine in Western Australia.

It comes after MMG cut more than 100 workers at the mine to wind down production.

The site decreased production from 1.6 million to 1 million tonnes due to low base metal prices. It is set to produce up to 12,000 tonnes of copper ore this year and up to 55,000 tonnes of zinc ore.

The move to sell comes as base metal prices rise, particularly zinc, which increased 41 per cent this year, providing the best return for investors after silver.

This week it reached $US2300 per tonne, up from $US1459 per tonne in January.

An MMG spokeswoman said the company believes Golden Grove is a “great asset with a strong future”, the West Australian reports, adding they only considered the sale after being approached by possible buyers.

At least ten offers have been understood to have been made so far.

MMG currently plans to build a $1.4 billion zinc mine – the Dugald River zinc project – in northwest Queensland. It is set to produce nearly 160,000 tonnes of zinc, and other by products, over its expected 28-year life.

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