Multinational Great Panther Replaces U&M Mining, Which Managed the Tucano Mine, With Minax After Drop in Gold Production

Minax Mining Company Is the New Administrator of the Tucano Mine and Will Replace U&M Mining Following a Major Deficit in Gold Production at the Site, According to Data Released by Great Panther, Which Manages the Operation

The company Great Panther, which oversees a series of mining operations in Brazil, announced last Monday, (04/18), the replacement of U&M Mining by Minax Mining in the administration of the Tucano mine in Amapá. This move was made to address the decline in gold production that occurred during the first quarter of 2022.

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Decline in Gold Production at Tucano Mine Led to the Replacement of U&M Mining by Minax, and the Mining Company Now Must Compensate for the Deficit

After a 43% decline in gold production at the Tucano mine in Amapá, reported by Great Panther in the first quarter of 2022 compared to the year 2021, the company announced the replacement of U&M Mining with Minax, which will now have to compensate for this production and will be responsible for administering the mine, with the goal of returning to the expected mineral production over the next few months.

Data from Great Panther regarding the Tucano mine shows that, between January and March of this year, 14,319 ounces of gold were produced, compared to 24,978 ounces during the equivalent period in 2021, a significant decline for a site with such potential for gold production. Furthermore, the volume from the first three months of this year still shows a 31% drop compared to the 20,850 ounces from the last three months of last year, further worsening the situation for U&M Mining in managing the site. 

The Tucano mine is one of the largest in Brazil and has a large gold reserve for gold production, maintaining high expectations for Great Panther. The company indicated that the Tucano mine was responsible for 98.03% of gold production during the period, with 14,037 ounces, and therefore could not allow the mining company to continue with low productivity at the site, seeing Minax as a new opportunity to recover production and expand operations further in the coming months.

Despite the Low Productivity of U&M Mining, Great Panther Highlights Other Reasons for the Decline in Gold Production and Places Responsibility on Minax to Get the Mine Back on Track

Although the management of U&M Mining did not meet Great Panther’s expectations for the Tucano mine in Amapá, the company needed to state that other factors contributed to the low production at the site. Thus, the mine was also significantly affected by the reconciliation of the mine and the greater tonnage of crushed ore during these first months of 2022.

Additionally, in its official statement, Great Panther commented on the arrival of the new mining company and stated: “To overcome the performance issues with the previously contracted party, the mobilization of our new mining contractor, Minax, began during the quarter. The company continues to work closely with its current contractor, U&M, to ensure a safe and efficient transition to Minax. During the transition, Tucano will continue to compensate for the deficit in tonnage extracted from U&M with the capacity of the new Minax mining fleet.”

Finally, the company emphasized the ongoing dismantling of the TAP AB, TAP C, and Urucum North pits as another factor that led to the low production but asserted that it is working with Minax to reverse the situation.