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JSC Pavlik buys new US$43M FLSmidth gold plant

Danish-listed FLSmidth will supply a US$43 million gold plant to Russia’s JSC Pavlik, with equipment to be delivered from the December quarter this year. The manufacturer says it is booking the revenue in the current quarter.
JSC Pavlik buys new US$43M FLSmidth gold plant JSC Pavlik buys new US$43M FLSmidth gold plant JSC Pavlik buys new US$43M FLSmidth gold plant JSC Pavlik buys new US$43M FLSmidth gold plant JSC Pavlik buys new US$43M FLSmidth gold plant

The existing FLSmidth gold plant at JSC Pavlik's operation in Russia's east

Staff reporter

The seven million tonnes per annum plant is expected to start operation, next to one FLSmidth delivered for JSC Pavlik in 2013-14 in the Magadan region in Russia's east, late in 2021 or early 2022.

FLSmidth said the new DKK290 million order covered materials handling and flotation equipment, gravity concentrators, screens, gold leaching, dewatering, pumps, cyclones, valves, instruments and reagent systems, as well as electrical and automation packages.

The Copenhagen-listed company's shares (FLS) closed up 2% Tuesday at DKK234.60, capitalising it at DKK11.79 billion (US$1.74 billion).

FLSmidth said last month it was sacking 500 employees due to "current industry caution and delays tied to large capital investments", including in its primary mining market.

CEO Thomas Schulz said in October last year global economic headwinds "combined with challenges regarding licence to operate" had curbed mining capital investments.

"The social licence to operate is becoming an increasingly important issue and is now considered a top risk for mining companies. This has caused some projects to be postponed. On the other hand, we are seeing growing interest in our sustainable technologies and tailings management, which can help mining companies maximise safety and attain a licence to operate," Schulz said.

 

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