https://www.miningweekly.com

Discovery set to shut Boseto mine

17th December 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Copper miner Discovery Metals on Wednesday announced that it would mothball its Boseto openpit operation, in Botswana, within the next six months.

The miner told shareholders that a review of the openpit operation had been launched earlier this year to determine the effect of the current and continuing soft market outlook for copper, as well as the prevailing high stripping ratio and the restricted geometric nature of the Boseto openpits.

The review determined that the prevailing high strip ratio would result in a high operating cost environment, which was not sufficiently cash flow positive in light of the prevailing copper price.

“The review concluded that the current outlook for copper pricing on world commodity markets is expected to remain soft in the short- to medium-term, and hence the recovery in the profitability of the Boseto openpit operation is unlikely in the near future,” the company said in a statement.

Discovery would now move to maximise the extraction of ore from the current operating pits, while no new openpit operations would be started. The company would also maximise all available revenue from the current openpit operations and minimise waste stripping and movement.

Furthermore, Discovery would also immediately implement cost management and reduction strategies in order to reduce the operating costs at the Boseto projects.

The Boseto project was expected to cease mining operations by the middle of 2015.

In September this year, Discovery placed the development of the Zeta underground mine, at the Boseto mine, on hold, after failing to raise the necessary funding for the project.

Edited by Creamer Media Reporter

Comments

Latest News

Ironveld smelter
Ironveld ramp-up slower than expected
28th March 2024 By: Darren Parker

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.127 0.164s - 88pq - 2rq
Subscribe Now