Modern Mining December 2018

MINING News

CBG recently achieved first ore at its ‘Bauxite Production Expansion Project’ in Kamsar, Guinea (photo: Fluor).

Milestone achieved on bauxite project

is planned to include further exploration results and an assessment of the lithium market conditions. The PEA envisages a capital cost of US$275 million for the mine, concentra- tor and lithium carbonate conversion plant, including by-product circuits and contingency. The average cash cost of pro- duction is estimated at US$4 080/tonne of battery-grade lithium carbonate, net of by- products and inclusive of royalties. The project would generate Life of Mine revenues of US$852 million. The pre- tax NPV at an 8 % discount rate is put at US$144 million (US$109 million post-tax), assuming an average sale price of lithium carbonate of US$13 000/tonne while the pre-tax IRR is estimated at 29 % (25 % post- tax). The payback period is approximately 2,5 years.  workers on site at peak construction. The project team focused on hiring a local workforce, which resulted in Guinean workers representing nearly 75 % of the workforce at site. To align the workforce on safe work practices and create a safe work culture at the site, Fluor developed a spe- cialised safety programme. The project has worked more than 4 million hours without a lost-time incident. CBG is jointly ownedby theGovernment of Guinea and the Halco Mining consor- tium, which includes Alcoa, Rio Tinto and Dadco Investments. 

Desert Lion Energy Inc, listed on the TSX-V, has reported the results of the company’s Preliminary Economic Assessment (PEA) for its Namibian lithium project. The PEA covers mining, concentrate and lithium carbonate production. The PEA was pre- pared by independent consultants, Hatch and The MSA Group. “We are very pleased with the results of the PEA which confirm management’s belief in the benefits associated with the project’s at or near surface mineralisa- tion, proximity to high quality existing infrastructure and the low-cost operat- ing environment in Namibia. The PEA demonstrates the compelling economics of the project, highlighted by low capi- tal costs, low operating costs and high earnings.” The PEA details the production of lepid- Fluor Corporation, listed on the NYSE, reports that Compagnie des Bauxites de Guinée (CBG) has achieved first ore at its ‘Bauxite Production Expansion Project’ in Kamsar, Guinea. Fluor is providing engi- neering, procurement and construction management services on the project. “From developing the local craft work- force to strengthening the economy, this project will have a lasting positive impact on the Kamsar community,” said Tony Morgan, President of Fluor’s Mining &

Metals business. “Achieving this milestone safely, on budget and on schedule is a testament to the dedication and persever- ance of the joint CBG and Fluor team.” The project is expanding bauxite production at the mine from 13,5 to 18,5 million tons per year. Fluor is respon- sible for the expansion of the mine infrastructure, rail system, port facility and processing plant infrastructure and utilities. There were more than 1 500 craft

Positive PEA completed by Desert Lion Energy olite (lithium) concentrate at the mine site with final processing of such concentrate into battery-grade lithium carbonate near the Port of Walvis Bay. The mine site is located approximately 20 km from the town of Karibib and approximately 220 km from Walvis Bay, to which it is connected via the national highway and state-owned railway.

The vertically integrated plant encom- passes the development of a mine, concentrator and lithium carbonate plant capable of producing 20 000 tonnes per year of battery-grade lithium carbonate. By-products include 35 250 tonnes of pet- alite concentrate per year and 290 tonnes of tantalum concentrate per year. The development plan will continue to be assessed during the next stage of work to be completed by the company which

6  MODERN MINING  December 2018