Modern Mining May 2017

MINING News

have a very negative impact not only on the mining industry but also on the economy. “Now more than ever the DRC should be focused on retaining its existing investors and attracting new ones. It’s certainly not the time to harvest more from less for short term gain. It’s my sincere hope that this time round the government will engage the mining sector fully in the proposed review to achieve an out- come that will be in the best interests of the Congolese economy as well as the country’s mining sector,” he said. “The existing code is in fact a good one but it is not always being applied effectively and there are still many mining operations that do not operate under the code. There are also a number of issues and challenges which mining companies are having to face which make operating in the DRC more chal- lenging. In Kibali’s case, these issues include more than US$200 million in unpaid TVA and duty refunds.”  low phosphorus and low sulphur anthracite. Callaghan said these factors were respon- sible for the strong price environment which, when coupled with RAC’s low costs, would enable the project to enjoy robust margins. “The PFS shows that the RAC project ticks every box, ranging from a premium-quality product through to low costs and strong margins,” he said. “The project is ideally placed to capitalise on the strong supply- demand fundamentals in the South African premium metallurgical coal market. There is also encouraging potential to grow the mine life with further drilling of both the Gus and Alfred seams.” The PFS, led by VBKom, examined all aspects of geology, mining, processing and supporting infrastructure at market prices for anthracite, to a nominal accuracy of ±15 %. The trade-off and detailed optimisation studies delivered an optimal development scenario of an average 60 000 tonnes per month underground mining operation using conventional mining in a bord-and-pillar configuration. It is envisaged that three adits will be developed and six sections established in a phased ramp-up. The mining operation will be undertaken by a contractor with 70 % of the equipment fleet being provided by Acacia. 

volatile political climate in the DRC at present,” Bristow said. “Randgold remains committed to the DRC and is confident that its government, politi- cians and civil society have the will as well as the capacity to work together to secure the country’s future. We therefore continue to invest in exploration here and to lead the way in developing the north-eastern DRC as a major new gold mining region. Our engage- ment with the country and its people is also evident in our substantial investment in local economic development and community upliftment programmes. These include macro and micro agribusinesses designed not only to provide regional food security but to generate surplus produce for export.” It was a source of concern, however, that the DRC government had once again signalled its intention of reviewing the country’s 2002 mining code with the clear intention of maxi- mising state revenue, Bristow said. This could ASX-listed Acacia Coal has announced that a Pre-Feasibility Study (PFS) has found that its flagship Riversdale Anthracite Colliery (RAC) project in South Africa will generate strong financial returns for shareholders. The study shows that the project is esti- mated to cost just A$24 million to build on an outsourced operational model, with sustain- ing capital of A$7,85 million and is forecast to generate an average 438 000 tonnes of sales per annum for an initial eight-year mine life. Based upon an average selling price of A$125,1/tonne FCAmine gate and an effective 6 % royalty rate, the project study demon- strates a cash margin after tax of A$34,40/t. The PFS found that these financial parameters would result in an outstanding internal rate of return of 53 % and underpin a net present value at a 10 % discount rate of A$73 million. Acacia Managing Director Hugh Callaghan said the combination of the extremely high quality nature of the RAC coal and the declin- ing inventory of metallurgical coal in South Africa was at the heart of the project’s strong outlook. Metallurgical test work conducted as part of the PFS found the RAC coal was ideal for use in South Africa’s ferrochrome industry, which is struggling to source sufficient quantities of

Pre-Feasibility Study indicates strong returns for Acacia's Riversdale project

May 2017  MODERN MINING  11