During the year to June 2004, Kumba Resources’ Sishen iron ore mine achieved record production and the group also achieved record coal production and sales volumes, Kumba said in a statement on Wednesday.
There were also higher sales of power station coal (1,3-million tons or 10%) to Eskom’s Matimba and Majuba power stations, while higher demand for coking coal and improved operating efficiencies increased other domestic sales by 4%.
At Ticor SA in Richards Bay, the two furnaces continued to ramp-up according to the planned schedule, resulting in higher production and the first sales of slag and low manganese pig iron.
To take advantage of the predicted growth in demand for titanium slag, Ticor SA plans to shut furnace two in the current half of the calendar year to implement improvements identified during commissioning and to effect repairs to the bottom of the furnace shell.
Ticor Limited in Australia saw strong production and good sales performances during the year.
Production at the Ticor chemical plant was stopped in May 2004 due to unfavourable market conditions and the strong Australian dollar, and following unsuccessful attempts to dispose of the operation as a going concern.
Production of zinc concentrate at Rosh Pinah mine increased 33% on the comparative period to a record annual level of 121 000 tons.
Zinc metal production increased 21% as a result of the commissioning of the Chifeng (Hongye) refinery expansion in Inner Mongolia, China.
Local sales of zinc metal were marginally lower while other sales, which include Chifeng, increased by 165% on the comparative period.
A feasibility study into the Sishen Expansion Project, which will increase iron ore output by 10-million tons per annum in addition to the one million tons per annum expansion currently in progress, is due for completion by the end of 2004.
The expansion is possible in part by the creation of an additional product grade.
A revised study on the Sishen South project, incorporating an optimised configuration under current international market conditions and exchange rates, is being undertaken.
Negotiations with transport parastatal Transnet continue in respect of the timeous provision of the requisite rail and port infrastructure associated with these projects.
It is anticipated that final Kumba board approval to proceed with the Hope Downs project in Western Australia will be sought before the end of the calendar year, once outstanding contractual issues with Kumba’s Australian partner, Hancock Prospecting, have been resolved.
During July 2004, an agreement was concluded with the government of Senegal and its agency, Miferso, to commence an exploration programme intended to establish the resource base associated with the Faleme iron ore deposit in the southeast of the country.
Technical support will also be provided to Miferso in developing a business model for funding the infrastructural requirements of the project.
Good progress was made on the outstanding approvals from Transnet in respect of the RBCT Phase V expansion and should enable the one-million tons per annum Inyanda export thermal coal joint venture with Eyesizwe Coal to proceed before the end of the calendar year.
Final approval will allow the project to participate in the prevailing buoyant international market conditions, Kumba said.
Approval for the development of a new beneficiation module at Grootegeluk mine, at a capital cost of R344-million, to provide up to 700 000 tons per annum of additional product suited to the manufacture of market coke is expected within the current quarter.
Capital expenditure of R91-million was also approved for the construction of a jig beneficiation plant at Leeuwpan mine, which will increase annual production of thermal coal by 900 000 tons to 2,6-million tons per annum.
Implementation is subject to the conclusion of an off-take agreement with Eskom.
The selection of a strategic partner to participate in the further evaluation, and possible development of a large, high grade coking coal resource owned by Kumba at Moranbah South, in the Bowen Basin of Queensland, Australia, is well advanced.
Exploration of the potential of the Toliara mineral sands deposit in south-
western Madagascar continues according to plan, with the objective of identifying ilmenite feedstock to support additional furnaces at Ticor SA’s Empangeni plant.
Early results are encouraging as they indicate that the size of the reserve is in line with original estimates.
The production ramp-up of the second module of 25 000 tons per annum at the Chifeng zinc refinery has exceeded 90% of full capacity.
The roaster plant at Lindong was commissioned in May 2004, after a regional earthquake in August 2003 caused construction delays.
Intensive exploration in the vicinity of the Rosh Pinah zinc/lead mine in southern Namibia continued, involving the integrated efforts of surface and underground programmes.
The exploration has the potential to extend the resource base of the mine. – I-Net Bridge