Diogo, February 23, 2023
FY2022 Results and 2023 Outlook
GCO: Slight production decline in 2022, the company invests to prepare for the future
Production slightly decreased due to a lower average grade on the mining area, however, offset by the commissioning of the dry extraction unit at the end of 2022. In an uncertain market, GCO has invested in production and social support to prepare for its future.
Mineral sand production fell by 8% to 742 kt in 2022, due to a lower average grade on the mining area compared to 2021. Global demand for titanium products (ilmenite, produced by GCO, constitutes the bulk of its production) remained stable compared to the records reached in 2021.
More specifically, zircon production decreased by 11% to 57 kt, and sales volumes reached 59 kt, down 7%. Global demand for zircon remained stable in 2022, driven by the ceramics sector in the first half of the year (around 50% of zircon outlets). However, a slowdown was observed from the third quarter onwards.
Mineral sand production in 2023 by the GCO mine is expected to be equivalent to that of 2022. The commissioning of a dry extraction unit (SDM) at the end of 2022 will indeed compensate for the lower grade of the exploited area of the deposit. This unit, as well as the better grades of the deposit, will allow a significant increase in production from 2024 onwards.
This unit has been the subject of an investment of €30 million. It has been accompanied by the hiring of more than 100 employees who have received specific training. This brings the number of employees and subcontractors at GCO to 2,100, including 400 members of local GIEs who have been entrusted with entire areas of the company’s activities, particularly in the field of environment and general services.
In terms of environment and safety, the year 2022 saw the realization of two major firsts.
In September, GCO made a historic gesture, alongside the Minister of Mines and Geology: that of returning, in accordance with the commitment that binds mining companies to the State, 85 hectares of rehabilitated and reforested mining land. This first plot of land returned to the Directorate of Water and Forests is just one step in this gradual process, which aims to return 950 hectares by 2025.
Three months later, the company’s strong commitment to an occupational health and safety policy resulted in an exceptional result of 12 million hours worked without an accident with lost time.
After 8 years of operation in the Thiès region, GCO’s mobile mine is about to enter a new region, that of Louga. Its teams have established a dialogue and consultation with the new stakeholders, in the continuity of the inclusive approach that the company has always initiated. It has enabled more than 134 households to benefit from improved housing, not to mention the contributory actions on educational, economic, environmental and health axes for all neighboring communities.
“After a record year in 2021, the economic context is more uncertain. The mobile mine will operate in a new region. We see this change in scope as a great opportunity to transform our impacts into opportunities for the benefit of the greatest number.”
Guillaume Kurek
CEO of GCO
