Petaquilla Gold is venturing into the production of building materials to create a clay products factory, Petarcilla SA, which will use waste from the grinding and extraction process at the Molejón gold and silver mine.
"Rodrigo Esquivel, President of Petaquilla Gold, said that this new project involves the construction of a factory for manufactoring tiles, bricks and slates made from clay, all of which allow the use of sludge in the basins from a 35 year processing period, instead of depositing them in the project area", reportedCapital.com.pa.
Apart from using the clay, the production plant will help to curb deforestation in the region, according to Esquivel.
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The company announced that there will be changes in its structure and in the operation of Molejón mine, with projections for gold production at the end of the year being reduced by 5000 ounces.
Representatives from Petaquilla Minerals, the Canadian company which owns the mine, told Prensa.com that the restructuring being prepared by the company would be ready by the end of the year and would involve "...
Since operations began in January 2010, it has had sales of $36 million, paid production expenses of $21 million and sold each ounce for between $945 and $1,152.
The company was granted mining rights on 18 November 2009 and will pay the state 4% of gross earnings over the 20 years it plans to operate.
Petaquilla Gold is looking to expand its Panamanian operations, this time to mine copper.
Within a reorganization process at Petaquilla Gold, a subsidiary of Petaquilla Minerals Ltd., the company Azuero Mine was created. It will exploit gold and copper deposits in "El Chorcha" (Chiriquí), "Cerro Quema" (Los Santos) and "Santa Rosa" (Veraguas), where the mining potential is estimated at $80 billion.
Petaquilla Gold plans to increase its extraction of gold this year at its mines in Panama from 6,000 to 8,000 ounces.
The president of the multinational mining company Petaquilla Gold, Rodrigo Esquivel, presented these forecasts for the year 2012.
At the same time, Esquivel delivered a total of $2,032,746.42 in two separate checks in royalties to the State of Panama and other commitments for the concession for the last two quarters of 2011, reported Laestrella.com.pa. One of the checks, $863,917.23 was made out to National Treasury of Panama, and another in the amount of $152,455.98 corresponded to the township of Donoso, located in the homónimo district.