Tshipi Borwa manganese project, South Africa

1st March 2013 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Name and Location
Tshipi Borwa manganese project, Northern Cape, South Africa.

Client
Broad-based black economic-empowerment (BBBEE) company Ntsimbintle Mining owns 50.1% of Tshipi é Ntle Manganese Mining (Tshipi) and Jupiter Mines owns 49.9%.

Ntsimbintle represents many divergent BBBEE shareholders, including Safika Resources, Nkonjane Economic Prospecting and Investments, John Taolo Gaetsewe Development Trust and ASX-listed OM Holdings.

Project Description
The Tshipi project, located about 20 km south-west of the mining town Hotazel, in the Kalahari manganese field, is an advanced mining development project, with a defined mineral resource estimate of 163-million tons grading at 37.1% manganese. Of the total resource, 62-million tons are classified as indicated resources and the remainder as an inferred resource.

The ore is contained within a 30-m- to 46-m-thick mineralised zone, which occurs along the entire strike length of the Borwa property.

The mine is being constructed as an openpit mining operation using a standard truck-and-shovel opencast mining approach. The Borwa mine property is located adjacent to the Mamatwan openpit manganese mine, which has been in operation for more than 47 years. Total run-of-mine ore tons to be produced are planned at 2.4-million tons a year. There are sufficient resources to ensure a 60-year life-of-mine at this production rate.

The mining of the openpit has been outsourced to Aveng Moolmans. All other parts of the operation will be run on an owner-operator basis.

Although the Hotazel area has established road, power and rail infrastructure, as well as water supplies, there is currently no infrastructure at the project mine site. Owing to inadequate transmission and distribution infrastructure, there is also no additional capacity available to supply power to the mine. The project’s power requirements, which are not significant, will, therefore, be supplied by diesel-driven generator units until power from the country’s infrastructure can be accessed.

Tshipi has constructed its own dedicated rail loading facility, which has joined the existing transport rail line a few kilometres from the site. Discussions are taking place with State-owned logistics group Transnet and Tshipi expects to sign a transport agreement shortly, which will enable  the company to access rail and port capacity for the export of manganese from the project.

Value
R1.7-billion.

Duration
Mine development started in 2011, with first ore mined in October 2012.

Latest Developments
Tshipi é Ntle Manganese Mining exported the first manganese from its new R1.7-billion Tshipi Borwa mine, in the Northern Cape, in December.

Waste stripping at the mine started in December 2011 and first ore was mined on October 10, 2012. The first railings took place in November and  the ore was railed from the mine to the Transnet Port Elizabeth bulk manganese stockpiles. The ore was then loaded onto the vessel on December 19 and shipped to customers in the Far East.

The Tshipi Borwa mine has three main tasks planned for 2013 – completing and commissioning the capital plant construction activities, ramping up to continuous production and optimising, as well as consolidating its operational efficiencies.
The mine also has several social plans earmarked for 2013, which include including providing education, job opportunities and fresh water for the communities surrounding the mine.

Key Contracts and Suppliers
Turgis Consulting (feasibility study) and Aveng Moolmans (removal of the overburden, drilling, blasting and hauling of the manganese ore).

On Budget and on Time?
The project remains on time and on budget.

Contact Details for Project Information
Jupiter Mines, tel +61 8 9346 5500, fax +61 8 9481 5933 or email info@jupitermines.com.
Tshipi é Ntle Manganese Mining, tel +27 11 011 9222.
Turgis Consulting, tel +27 11 476 2279, fax +27 11 476 2579 or email turgis@turgis.co.za.
Aveng Moolmans media contact, Cheryl Whitaker, tel +27 10 202 7000, fax +27 10 207 7204 or email cwhitaker@moolmans.com.