COST CONSCIOUS Remaining cost effective amid low copper prices is crucial for Palabora Copper
The development of Palabora Copper’s R9.3-billion Lift II project, in Limpopo, is under way and gradually ramping up to full project execution, Palabora Copper corporate affairs manager Hulisani Nemaxwi tells Mining Weekly.
This follows the recent approval by the shareholders of Palabora Copper, a subsidiary of Parabola Mining Company, to fund the development of the project, which will extend the life of the Palabora mine to 2033.
“Some of the major work for Lift II has been awarded, such as the shaft raiseboring contract, which will be undertaken by raiseboring and drilling services group Master Drilling,” says Nemaxwi, adding that the project team has achieved “some good results”, as far more than 10 km of tunnel infrastructure for the project has thus far been developed.
Nemaxwi
points out that Palabora Copper has in the past year undertaken “some serious cost-cutting initiatives” to ensure it remains competitive in global markets.
“Unfortunately, the predictability of the market is often not as easy as it sounds, as we are affected by the depressed copper markets and also the [low] magnetite price.
“The global copper markets also impact on our profitability. Nonetheless, we are optimistic about our future prospects,” states Nemaxwi.
He notes that Palabora Copper supplies about 90% of its copper to the local market. The magnetite it produces is mainly exported to Asia for use in steel production, whereas local companies use magnetite mainly for coal washing.
Palabora Copper distributes its vermiculite product almost equally between the international and local markets, he adds.
Nemaxwi points out that the company expects additional job creation through Lift II’s contractors, as construction will continue until 2020.
“These jobs will differ in specialities, ranging from unskilled to semiskilled and skilled professionals. For the nonskilled workers, we would like to ensure that the contractors [make]maximum effort to hire local labour.”
Various local industries, such as the supplies, services, tourism, accommodation and retail sectors, will also “boom” because of the nature of the construction that will be undertaken during the course of the project’s development, he adds.
Nemaxwi emphasises that the extension of the project’s life-of-mine will also provide more opportunities for local companies to continue doing business with Palabora Copper.
“Historically disadvantaged South African suppliers will be granted additional opportunities to directly and indirectly supply the mine with goods
,” he concludes.