Premier selects openpit strategy for early production at RHA
JOHANNESBURG (miningweekly.com) – Multicommodity explorer Premier African Minerals has outlined what it describes as a low-capital implementation strategy for its 49%-owned RHA tungsten project, in Zimbabwe.
The Aim-traded miner said on Tuesday that the assessment of various implementation strategies to enhance project value and reduce start-up capital costs had culminated in a decision to start operations with an openpit mine, limited to an initial 18-month production period that had the potential to fully finance underground operations.
The capital cost of the project would be $4.8-million, while the sustaining capital cost would be $157 000 with a pre-tax net present value of $15.8-million.
The internal assessment had, meanwhile, outlined a production price of $288.6/t and operating costs of $12.5-million.
Premier had prepared an internal preliminary economic assessment (PEA) of the openpit start-up option in isolation to demonstrate the reduced capital requirements of this option, as well as the self-funding capability once initial production had been commissioned.
The financial model incorporated a firm quotation for fabrication and installation of a process plant, which would likely be commissioned in March next year.
Capital requirements, mainly for support infrastructure and tailings storage, had been adjusted downwards from the October PEA to reflect the openpit operation.
CEO George Roach said the openpit early-production model had a targeted production date in the first half of 2015.
“When this is achieved, the cash generated is expected to fully finance the development of RHA, as set out in the updated October PEA. We are in advanced stage negotiations with offtake partners and debt providers and we look forward to updating shareholders in due course,” he commented.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...
VISIT SHOWROOM
Press Office
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
