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Study indicates Congo phosphate project can repay development cost in 26 months

21st August 2015

By: Ilan Solomons

Creamer Media Staff Writer

  

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A definitive feasibility study (DFS) of phosphates project developer Cominco Resources' 100%-owned Hinda phosphate project, in the Republic of Congo (RoC) indicates it has capacity to repay the $601-million development cost on the project within 26 months of production.

Cominco says the DFS demonstrates that the Hinda project is technically and commercially robust and will generate an after-tax, ungeared 38% internal rate of return and a net present value at a 10% discount of $1.85-billion.

The project is located in the coastal province of Kouilou and is “favourably situated” 37 km from the port city of Pointe-Noire, as the city is a major deep-water container port on the Atlantic coast of Central Africa.

Cominco avers that the Hinda deposit is one of the world’s largest and thickest undeveloped phosphate Joint Ore Reserves Committee-compliant ore reserves.

“Hinda has a low overburden to ore ratio and can be openpit mined, by free-digging, with no requirement for ripping or blasting,” the company states.

Cominco chairperson Colin Ikin highlights that RoC is a stable and safe place to work and invest, with a developed commercial sector, following the long-term success of the country’s oil and gas industry.

“Pointe-Noire is a city I know well and with a population of over 1-million it is the economic capital of the country. It is one of the most attractive coastal cities in Africa I have ever seen.”

Project Outline

Ikin explains that the Hinda project involves the development of an opencut mining operation including in-pit crushing of an average 20-million tons a year of ore.

The ore will be delivered to a beneficiation plant that will upgrade the apatite to produce 4.1-million tons a year of saleable phosphate rock concentrate grading 32% phosphorus pentoxide.

A slurry pipeline will transport this product 42 km to the export facility at Pointe Indienne immediately north of Pointe-Noire. Product dewatering, drying, storage and ship-loading facilities will be built at Pointe Indienne.

The project also includes all infrastructure required to support the development including power and gas transmission, accommodation and other buildings, access roads and mobile equipment.

The project costs are inclusive of all equipment and plant required to support the mining and processing activities of the project.

“Supporting project infrastructure is a necessary part of the Hinda project and is also important for the local community. This is a project that will create many local jobs and provide the area with modern roads,” Ikin concludes.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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