Name and location
Ruashi copper/cobalt project, Katanga province in southern Democratic Republic of Congo (DRC).

Project description
The project will entail the exploitation of the Ruashi and Étoile stockpiles and orebodies. The project site is about 10 km from Lubumbashi, in the southern DRC.

Phase 1 will entail mining and processing the oxide stockpiles at the Ruashi and Etoile stockpiles and orebodies.

A concentrator will be constructed at Ruashi to treat the oxide stockpiles.

This will include the translocation of a plant currently on care and maintenance at O'okiep. The concentrate will then be processed to produce copper metal and cobalt salt. During this phase, Metorex will buy a processing plant from Sable Zinc Kabwe, of Zambia.

The Ruashi mine and the Sable processing facility are projected to produce 10 000 t/y of copper cathode and 1 000 t/y of cobalt carbonate during phase 1, which will increase to 45 000 t of copper cathode and about 3 500 t of cobalt carbonate/metal in phase 2.

Phase 2 will involve the expansion of the phase 1 concentrator and the construction of a new acid-leaching and solvent-extraction and electrowinning plant for the production of copper and cobalt metal on site. This phase will also involve the mining of higher-grade copper ores from the Ruashi orebodies, with direct leaching of the ore, resulting in higher copper and cobalt recoveries and less dependence on cobalt.

There is also potential for phase 3, which will be mining high-grade sulphide ores under-ground.
The mine has an estimated life of 22 years.

Value
The capital costs of phase 1, at $31-million, is above the original forecast of $25-million. There are several reasons for the increase. Metorex CEO Charles Needham has stated that Ruashi had been overdesigned to include certain portions of Ruashi phase 2 and it had cost more to refurbish equipment than initially expected.

Phase 2 will cost $180-million, including $8-million in working capital.

Duration
Initial production at phase 1 of Ruashi started in June 2006.

The mine is being ramped up, treating material from 56 dumps and tailings dams.

Metorex is establishing phase 2 of Ruashi to begin copper production from January 2008.

Breakdown of main contracts
Not stated.

Client
Metorex Limited.

Latest developments
Metorex is to approach the Katanga province authorities in the DRC for a further dispen-sation to ship concentrate south to its treatment plant in Zambia, giving the company an additional 10 000 t/y of copper.
Metorex is currently shipping concentrate from its Ruashi phase I project to Sable, in Zambia, under a dispensation that runs until October.

The Katanga province authorities have blocked the shipment of untreated ore and concentrate that contains less than 15% concentrated copper out of the DRC.

Participants
Standard Bank is the lead finance arranger for the mine and the processing plant.

GRD Minproc is responsible for the engineering management.

Steffen, Robertson & Kirsten (South Africa) has completed a competent person's report, which includes a review of the technical, legal and financial aspects of the projects.

Bowman Gilfillan has completed a legal due diligence on the project with regard to ownership of mineral title.

Brait Corporate Finance is the transaction arranger and corporate adviser.

Barnard Jacobs Mellet is the corporate adviser and sponsor.

Deloitte & Touche Chartered Accountants (SA) was the independent reporting accountants.

Deloitte Corporate Finance division is the independent expert.

Construction materials
Not stated.

On budget and on time?
The project is on track.

Contact details for project information
Metorex Limited, tel +27 (11) 880 3155 or
fax +27 (11) 880 3322.