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January 2017

MODERN MINING

25

Top projects

TOP PROJECTS

O

ur graphite project is

Balama

in

northern Mozambique, now at an

advanced stage of construction.

The new mine is being developed

by Australia’s Syrah Resources

at a cost of US$185 million and will have the

capacity to produce 350 000 tonnes of concen-

trate a year at 98 % Total Graphitic Content

(TGC), with the reserves being sufficient for

over 40 years of operation.

Africa is awash with graphite projects,

primarily in Mozambique and Tanzania, but

Balama is the front-runner as it is just months

away from first production. It is also notable

inasmuch as it will exploit the world’s largest

flake graphite resource and will rank as the

world’s biggest graphite mine.

Balama will employ traditional open-pit

bench mining methods, with the mining opera-

tion projected to be 100 % free dig for the first

five years. The process route is conventional

and will include crushing, grinding, flotation,

filtration, drying, screening and bagging. The

final concentrate will be packed into bags and

trucked to the Port of Nacala, some 490 km to

the south-east.

The second project we cover in our Top

Mining Projects feature is the

Bisie

tin project

in the relatively remote North Kivu Province

of the DRC. Bisie has some real challenges to

overcome including the legendary instability

of the Congo as well as difficult logistics but

the rewards should be significant if the devel-

oper, TSX-V-listed Alphamin Resources, can

successfully get the deposit into commercial

production. Bisie is, after all, one of the big-

gest – and highest grade – tin deposits in the

world and is just crying out to be mined.

With a Feasibility Study in place and DRA

named as the preferred EPCM contractor, Bisie

is – as they say – ready to roll and Alphamin

is hoping that it will enter construction later

this year. If this is achieved, first production

can be expected in 2019. Once at steady-state,

the mine will produce 10 750 tonnes of tin in

concentrate on average per year, accounting for

roughly 3 % of world tin production.

No feature on Africa’s Top Mining Projects

would be complete without at least one gold

mine, as gold is arguably Africa’s signature

metal. There are a number of gold mines either

in development or just commissioned on the

continent, particularly in the West African

region, but the standout is undoubtedly

Asanko

in Ghana. Phase 1 of Asanko was com-

missioned early last year and is now producing

well above its nameplate capacity.

With Phase 1 of Asanko shooting the lights

out, developer Asanko Gold – run inciden-

tally by mining entrepreneur Peter Breese who

is well known in Southern African mining

circles – has made the decision to now pro-

ceed to Phase 2A of the project, which will

see the Esaase deposit, 25 km to the north of

the Phase 1 mine, being brought to account.

Phase2A is a major project in its own right and

has a capex of US$125 million. It will include

the construction of a 27 km long single-flight

overland conveyor, which will be one of the

longest in the world.

Phase 2A will eventually be complemented

by Phase 2B and once both these phases are in

place, Asanko will rank as the seventh largest

gold mine in Africa, with an annual gold pro-

duction of up to 470 000 ounces a year.

Our final project –

Gamsberg

– is located

in the arid Northern Cape of South Africa

near the town of Aggeneys. The developer

is Vedanta Zinc International, which is

investing US$400 million in the construc-

tion of a new open-pit zinc mine which will

supplement its current underground min-

ing operations at Black Mountain, just a few

kilometres away.

The ground-breaking ceremony for

Gamsberg was held in the middle of 2015 but

development is now entering its peak phase

with the appointment, late in 2016, of the bulk

mining contractor and the EPCM contractor for

the plant and related infrastructure.

Gamsberg is notable not only because

Vedanta has managed to cut capex by a full

US$200 million over original estimates but

also because it is located in an area identi-

fied as a biodiversity hotspot. Vedanta has

responded to the challenge of building a

mine in an environmentally sensitive area

by launching an environmental programme

which it believes will provide a new bench-

mark for the mining industry.

AFRICA’S

TOP MINING PROJECTS

In our regular Top Mining Projects feature we look at projects distinguished by

their size, innovation or pioneering spirit. This year we have identified four that

meet these criteria, three of them in the Southern African region and one in West

Africa. The commodities covered are graphite, tin, gold and zinc.

Africa is awash

with graphite

projects, primarily

in Mozambique

and Tanzania,

but Balama is the

front-runner as

it is just months

away from first

production.