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JOHANNESBURG (miningweekly.com) – JSE-listed Palabora Mining Company announced on Tuesday that it would provide its subsidiary Palabora Copper with R350-million in financial assistance in terms of a shareholders' agreement between the parties.
The board of Palabora and Palabora Copper decided at the end of November to progress the Lift II project from prefeasibility study (PFS) to feasibility study (FS) stage, with the study to be conducted between January and May 2014.
Palabora Copper’s current underground block cave operation was initially developed with a plan to deplete the Lift I reserve by 2020, but this has been brought forward by five years to December 2015 owing to the dilution from the North wall failure at the deposit.
“Comprehensive geological, mine and financial study has demonstrated that copper production at Palabora Copper can be extended on an economically rational basis beyond this date with the construction of a second lift underground block cave operation,” Palabora stated.
An investment of R55-million would be made available for the FS.
During this project stage, Palabora Copper would spend an additional R652-million on early works infrastructure and the ongoing development of the twin decline ramps.
The ongoing development of the declines and dependent infrastructure were seen as essential to maintaining Lift II as an ongoing option. The total investment during the FS stage would amount to R707-million.