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MODERN MINING
November 2015
MINING News
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.
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
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.
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
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.
Kumba’s Sishen mine in the Northern Cape produced 7,7 Mt in the third quarter of this year (photo: Kumba iron Ore).