Mid-tier Canadian miner B2Gold (TSX:BTO)(NYSE: BTG) is temporarily halting mining at its Masbate operation in the Philippines as government’s measures to contain the spread of COVID-19 has disrupted fuel supplies.
Milling activities, however,
continue as normal the company said, noting that is also moving forward with
ongoing expansion and development projects, despite certain restrictions and delays
triggered by the novel coronavirus pandemic.
“The temporary fuel shortage
is due to new regulations imposed by the Philippine Government related to the
COVID-19 virus to ensure that all materials, including fuel, arriving on
Masbate island via transport are not contaminated with COVID-19,” B2Gold
said.
The Vancouver-based company also
noted it would suspend drilling at its Gramalote project, in Colombia, which has
the potential to delay the completion of a feasibility study into the first
quarter of 2021.
B2Gold said last week it had put measures in place to manage and respond to the risks associated with the disease at all of its assets and offices.
Since no incidents related to
Covid-19 have been detected at its sites, projects such as the mill expansion
and solar facility construction at the Fekola mine in Mali are still projected
for completion in the third quarter of 2020.
Barring any unforeseen work
stoppages due to Covid-19, including consumable supply disruption, B2Gold
expects to meet its full-year gold production and cost guidance at Fekola.
Development of an underground mine
at Otjikoto in Namibia could potentially be postponed if contractors cannot reach
the site, as planned, in the second quarter, the gold producer said.
It noted that it didn’t expect that
a delay to the project will have any impact on the 2020 or 2021 forecasted
yearly production at Otjikoto.
Overall, the company continues to forecast
an annual production of at least 1 million ounces of gold.