Initial financial modelling confirms robust Rukwa mine project economics
JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed Kibo Mining on Thursday announced that initial financial modelling at its Rukwa coal mine, in Tanzania, had confirmed robust project economics, with continued surface mining expected to result in further reduced direct mining costs.
The company said initial financial modelling based on conventional mining methods had indicated that the project’s capital expenditure would be well below initial estimates.
The financial modelling also showed the potential for attractive investment return rates over the life-of-mine, and a short indicative capital payback period.
Direct mining costs were estimated at between $1.60/t and $1.90/t.
“A preliminary investigation into continuous surface mining as a possible replacement to traditional coal seam mining through blasting and drilling, on which all modelling has been done thus far, is also expected to bring about significant reductions in direct mining costs,” Kibo said.
Continuous surface mining would also provide the additional advantages of fast, precision mining of the coal seam, as well as a reduction in the crushing requirement.
"The initial robust economics of the Rukwa coal mine are better than expected and bode well for the remaining Rukwa coal to power project feasibility work.
“The results obtained from feasibility work done so far will now be subjected to further rigorous interrogation during the ensuing, more advanced, stages of the feasibility study. Incorporating specific requirements and specifications from the power feasibility study will further refine the economic assessment of the Rukwa coal mine,” Kibo CEO Leon Coetzee commented.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest Multimedia
Latest News
Showroom
Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...
VISIT SHOWROOM
Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
