Name and Location
Lift II copper project, Limpopo, South Africa.

Client
Palabora Mining Company (PMC).

Project Description
Palabora Copper has been producing copper in South Africa for more than 50 years, initially as a large opencast operation and thereafter as an underground block cave operation in 2002, known as Lift I.

The current underground block cave operation was developed with a plan to deplete the Lift I reserve by 2020. The closure of Lift I has been brought forward by five years to December 2015, owing to dilution from the North wall failure.

A 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, known as Lift II.

A new Lift II mining footprint 450 m below Lift I  will ensure a continuation of copper mining until 2033.

Value
The project is estimated at R9.3-billion .

Duration
Not stated.

Latest Developments
The project is awaiting shareholder approval.

A bankable feasibility study on the planned Lift II project has been undertaken, which Palabora Copper growth division GM Nick Fouche says has provided a sound technical and positive business case to proceed to full execution.

About R2-billion has been spent to date on the development of a twin decline and supporting engineering infrastructure as part of an early works programme.

This has ensured critical access to the undercut and will enable the Lift II production level to be ready for construction.

After recommending to shareholders, in May, that the project go to full execution, Fouche said new shareholders had wanted more information to make an informed decision and select the appropriate funding model.

“While the board did not provide a full approval for the entire project, certain works were allowed to continue, pending the final shareholders’ decision, scheduled for end of September,” he advised.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Palabora Mining Company GM corporate affairs and company secretary Keith Mathole, tel +27 15 780 2182, fax +27 15 780 2061, fax-to-email +27 86 724 4698 or email keith.mathole@palabora.co.za .