https://www.miningweekly.com

Bisie tin project, Democratic Republic of Congo

26th May 2017

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

Font size: - +

Name of the Project
Bisie tin project.

Location
The project is located in the Mpama North prospect, in North Kivu province, in the Democratic Republic of Congo (DRC).

Client
The Bisie tin project is 80.75%-owned through Alphamin’s DRC registered subsidiary ABM SA; 5%-owned by the DRC government and 14.25%-owned by the Industrial Development Corporation of South Africa.

Project Description
The Bisie project contains two exceptional high-grade deposits – Mpama North and Mpama South – and is one of the highest-grade known tin deposits in the world.

The front-end engineering design (FEED) and control budget estimate (CBE)  have increased proven and probable reserves from 3.52-million tonnes grading at 4.34% tin containing 152 800 t in the 2016 updated feasibility study to 4.67-million tonnes at 3.58% tin containing 167 300 t.

The life-of-mine has also been increased from 12 to 12.5 years.

The completion of the FEED programme and CBE in February this year further confirmed the robust economic metrics and potential of the project, and its development into North Kivu’s first commercial mine and a new premier global tin-producing mine.

The CBE results have illustrated the project’s potential to remain profitable at lower tin prices and increased prices for key consumables.

The fundamental mining method has not changed, but the layout and mine design parameters have changed notably from the updated feasibility study issued in June 2016.

Contractors will mine the Mpama North orebody using proven underground mechanised mining methods to deliver ore to the process plant at an expected rate of 25 000 t/m to 35 000 t/m.

The process design is based on recovery of tin into concentrate through conventional gravity separation methods. The process plant design capacity has been estimated at between 360 000 t/y and 400 000 t/y.

Jobs to be Created
It is expected that ABM will employ about 700 people during construction and create about 450 permanent local jobs during operations. As a result, significant economic benefits are expected in the DRC, which has had little foreign investment for decades while trying to overcome security and governance challenges.

Indirect job creation is expected to be far higher than the mine’s direct jobs and can be reasonably expected to achieve the 1:14 ratio of indirect jobs commonly reported in Africa for similar projects, potentially resulting in an additional 6 300 jobs.

Net Present Value/Internal Rate of Return
The FEED and CBE have estimated a net present value, at an 8% discount rate, of $402.2-million and an internal rate of return of 49.1% after tax. Payback has been estimated at 17 months from first production.

This compares with a post-tax net present value, at a 13.54% discount rate, of $167.79-million, and an internal rate of return of 48.4%, with a payback of 23 months in the updated feasibility study.

Value
The peak funding requirement for the project has increased from $124.4-million in the updated feasibility study to $151.43-million in the CBE.

The initial capital costs include the design and development of an access road, an underground mine, the creation of a 64 000 t ore stockpile, a process plant, a tailings storage facility and all associated services required for the operation of the mine.

Duration
On the assumption that construction activities will start in the third quarter of 2017, first production of tin in concentrate is expected in the fourth quarter of 2018.

Steady-state production is expected by 2019.

Latest Developments
Alphamin has executed nonbinding term sheets for $80-million of project debt for its Bisie project.

Construction on the project started in the first quarter of this year.

Alphamin is working towards securing unconditional commitments from the potential lenders.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Alphamin Resources CEO Boris Kamstra, tel +230 269 4166 or email boris.kamstra@alphaminresources.com.

Edited by Creamer Media Reporter

Comments

Showroom

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 
Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.253 0.289s - 90pq - 2rq
Subscribe Now