Modern Mining February 2017

MINING News

Petra’s expansion projects improve ROM grade profiles

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. 

Tips and impact breakers on 839 level – the new production/extraction level for Cullinan’s C-Cut project (photo: Petra Diamonds).

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 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.  Development of the shaft is scheduled to start later this year.

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.

8  MODERN MINING  February 2017