Modern Mining November 2015

MINING News

Kumba’s Sishen mine in the Northern Cape produced 7,7 Mt in the third quarter of this year (photo: Kumba iron Ore).

In its report on the quarter ended 30 September 2015, Kumba Iron Ore says that total production decreased by 12 % to 11,4 Mt compared to Q3 2014, but was 10 % higher compared to the previous quarter. Total export sales vol­ umes increased to 9,8 Mt, 9 % higher than Q3 2014 but 16 % lower than the previous quarter. Kumba’s Sishen mine near Kathu in the Northern Cape produced 7,7 Mt, a decrease of 17 % due to a temporary lack of sufficient exposed high quality ore for blending purposes and adjustments to the mine plan and schedule as it transitions to the lower cost pit configuration. Kumba’s production increases quarter on quarter Whilst further improvement is antici­ pated in Q4 2015, production is now expected to be approximately 31 Mt (previous guidance 33 Mt). Waste mining activities are currently at approximately 230 Mt/a and are expected to be main­ tained at this rate for FY2015 and FY2016 to ensure adequate levels of exposed ore. This compares to previous guidance of around 200 Mt/a. At Kolomela, located near Postmasburg in the Northern Cape, the revised min­ ing plans, including deferral of mining at one of three pits, were implemented. Efficiencies and throughput at the plant continued to improve, resulting in produc­

2,5 Mt/a to 3,0 Mt/a was completed on time and schedule in September. The plant expansion included the installation of two additional leach tanks and a pebble crusher. For the full-year 2015, Otjikoto is expected to produce between 140 000 and 150 000 ounces of gold (including pre- commercial production) at a cash operating cost in the US$500 to $525 per ounce range. All ore in 2015 and most ore in 2016 is expected to come from the existingOtjikoto pit. Beyond 2016, Otjikoto’s gold produc­ tion is expected to be further enhanced by the development of the Wolfshag zone, adjacent to the main Otjikoto pit.  tion of 3,3 Mt for the quarter. Production for the year has been revised upwards to 12 Mt (previously 11 Mt) and, in order to ensure feed to the plants at this rate going forward, waste mining has been increased to 44-45 Mt from the previous guidance of 35-38 Mt. In accordance with the closure plans for Thabazimbi, located in Limpopo Province, mining ceased at the end of September 2015 but some processing of previously mined material through the plant will con­ tinue until 2016. Export sales of 9,8 Mt were achieved, an increase of 9 %, due to improved rail and port operating performance. 

Otjikoto gold mine running above budget Reporting on the third quarter, Canada’s B2Gold Corp says its new Otjiokoto gold mine in Namibia continued to perform strongly, producing 38 252 ounces of gold in the quarter, approximately 4 % (or 1 361 ounces) above budget. Gold production exceeded budget mainly due to better than expected mill throughput (704 132 tonnes processed versus 602 097 tonnes budgeted) and very high mill recoveries of 99,1 % (versus 95,7 % budgeted). The average gold grade processed was 1,71 g/t compared to budget of 1,78 g/t.

B2Gold continues to work on a new geo­ logic resource model for the Otjikoto pit incorporating 2014 drilling, grade control data and in-pit mapping. The new geologic model and related engineering work are expected to be completed in the fourth quarter of 2015. In the year to date, Otjikoto has pro­ duced 106 349 ounces of gold (including 18 815 ounces of pre-commercial produc­ tion), approximately 5 % (or 5 257 ounces) above budget. Expansion of the Otjikoto mill from

14  MODERN MINING  November 2015