JOHANNESBURG (miningweekly.com) − South African precious metals junior Pan African Resources will install a 15 kW solar power plant at its Barberton mine, in Mpumalanga, at a cost of R600 000.
The capital cost of the project will be shared between Pan African and an Asia-based multinational company, which CEO Jan Nelson did not name.
The solar plant is expected to reduce Pan Africa’s electricity costs.
"In March, I reported that it is the company's ambition to build itself up into a midtier miner and that the company would do that based on profitability, rather then tonnage. I’d rather my shareholders see the financial benefits now as opposed to ten or 15 years time," Nelson said on Thursday.
If the 15 kW plant proved to reduce electricity costs sufficiently, the company would construct a 15 MW plant at a cost of between R500-million and R600-million.
"Should this be the case, Pan African will be able to reduce its electricity costs by 60%. Electricity is currently the highest contributor to the company's mining costs and accounts for about R40-million a year," Nelson said.
Meanwhile, Pan African reported that it had increased the resource estimate at its only producing mine by 7% to 2.55-million ounces.
“These results confirm that the Barberton ore-body is able to sustain current production rates well into the future,” said Nelson.
Barberton Mines comprises of Fairview, Sheba and New Consort mines.
Edited by: Creamer Media Reporter
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