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MODERN MINING
February 2017
MINING News
In its latest trading update for the six
months ended 31 December 2016 (H1
FY 2017), Petra Diamonds says that pro-
duction was up 24 % to 2,01 million carats
(compared to 1,63 Mct for H1 FY 2016)
due to increased contribution from undi-
luted ROM ore leading to improved ROM
grades, and additional tailings production
from Kimberley Ekapa Mining.
The Group says it remains on track to
deliver full year production of approxi-
mately 4,4 to 4,6 Mct.
Underground expansion projects
remain on track with Finsch’s Block 5 SLC
and Cullinan’s C-Cut Phase 1 delivering
initial production during the period as
evidenced by the improving ROM grade
profiles.
Finsch’s ROM carat produc tion
increased 9 % to 816 001 carats, driven by
improved ROM grades of 54,5 cpht due to
continued pillar mining in Block 4 and the
increasing contribution from the newly
established Block 5 SLC, partially offset
by lower ROM tonnes. Overall production
reduced by 6 % to 1,03 Mct, due to the
Petra’s expansion projects improve ROM grade profiles
Tips and impact breakers on 839 level – the new production/extraction level for Cullinan’s C-Cut project
(photo: Petra Diamonds).
planned reduction in tailings production.
Cullinan’s diamond produc tion
increased 30% to 419 754 carats, in linewith
the company’s guidance. Initial production
from the C-Cut phase 1 block cave, coupled
with continued pillar and reclamation min-
ing, resulted in a ROM grade of 34,5 cpht
for the period, an increase of approximately
15 % on ROM grades achieved in H2 FY
2016, and in line with company guidance
of 33 to 35 cpht for H1 FY 2017.
As announced during the Q1 FY 2017
Trading Update, production at Koffie
fontein was hampered by downtime
required to resolve issues encountered in
the SLC ore handling infrastructure. The
mine is now set to deliver planned levels
of production from H2 FY 2017 onwards.
Kimberley Ekapa Mining’s attributable
production delivered 432 174 carats fur-
ther to the acquisition of the Kimberley
Mines and the associated tailings resources
during January 2016. Undergroundmining
production continued as expected and
treatment of ROM tonnes was restricted
due to the planned installation of a crush-
ing circuit at the Central Treatment Plant to
process fresh ROM ore.
ROM stockpiles of around 200 000
tonnes were built up during the period
and these will be processed during H2
FY 2017. Tailings grades of 12,1 cpht were
achieved, above the 9-10 cpht grades pre-
viously guided, due to increased recovery
of diamonds in the smaller size categories.
At the Williamson mine in Tanzania,
diamond production increased 12 % to
106 831 carats (with larger volumes of
ROM tonnes treated). During the period,
commissioning of the newly installed mill
section commenced and is expected to
be completed during Q3 FY 2017. Once
fully commissioned, both ROM grades and
throughput will improve and therefore
Petra is maintaining its full year produc-
tion guidance.
The commissioning of the new Cullinan
plant is due to commence towards the
end of the current quarter (Q3 FY 2017),
with production from the old plant ceas-
ing by the end of February, allowing for
tie-ins between the new and existing
infrastructure and the commencement of
sectional commissioning of the new plant.
Petra says that ramp up to full production
is expected in Q4 FY 2017.
Afarak restarts opencast mining at Mecklenburg
Afarak Group has entered into a ‘Mining
Services Agreement’ with Pholagolwa
Mining to continue the opencast mining
at its Mecklenburg chrome mine on the
Eastern Limb of the Bushveld Complex.
Work is currently underway on increasing
the high wall to 65 m from 40 m. The first
tonnages are expected shortly and full pro-
duction is expected to be reached by April
for a period of six months.
Full production will be 30 000 tons
of chrome ore per month and the total
opencast for the project is expected to be
just over 200 000 tons of chrome ore. This
will also allow better access to the under-
ground mining area which has the potential
to produce 4,5 million tons of chrome ore.
Development of the shaft is scheduled to
start later this year.
Dr Alistair Ruiters, outgoing CEO of
Afarak, said that this project highlights
Afarak’s responsiveness to market condi-
tions.“In response to themarket upswing, an
opportunity was identified in increasing the
highwall andwhichwill allowopencast min-
ing and facilitate underground mining. This
added production capacity allows us to reap
the benefits of the current market upswing.”
Afarak is a global vertically-integrated
producer of speciality alloys with opera-
tions in South Africa, Turkey, Germany,
London, Helsinki and Malta. It is listed on
the NASDAQ OMX Helsinki Stock Exchange
and the London Stock Exchange.