Modern Mining September 2019
flow cash. Higher received pricing drove margin expansion at all operations and the Group received higher dividend flow from its joint ventures. The year was characterised by a step- change in operational momentum at Impala Rustenburg as the implementation of restructuring initiatives yielded gains. Despite the closure of 4 Shaft and the scaling down of production at 1 Shaft (col- lectively approximately 554 000 tonnes), mill throughput increased by 2 % to 11,21 Mt (FY-2018: 10,95 Mt). This was due to improved delivery at both 12 and 14 shafts (+504 000 tonnes) and supported by the ramp-up in volumes from 16 (+294 000 tonnes) and 20 (+91 000 tonnes) shafts. The execution of the Impala Rustenburg restructuring made good progress during the year with the first phase being success- fully completed. This process set out to optimise and align the overhead structures and labour complement at the operation to a smaller and more productive future min- ing footprint. A multitude of stakeholder engagements were undertaken to con- power supply requirements (Arcadia’s peak power requirement is 16 MW); and an option for an additional 25 MW of supply in the event of further expansion of the facility or downstream processing (lithium carbonate or hydroxide plant). African Continental Minerals currently holds two Special Grants covering a total 245 000 hectares and is awaiting the final approvals on a third asset. All assets are covered by existing powerlines ranging from 11 kV to 33 kV. Test and production wells will be placed within 4 to 8 km of power distribution lines. ACM’s parent entity, Jacqueline
the Group’s portfolio, management con- tinues to explore ways to improve safety, productivity and cost efficiency at all other operations. To this end, the Group suc- cessfully maintained the recalibration of operations at Marula, while sustaining industry leading productivity and safety per- formances at Mimosa, Two Rivers, Zimplats and Impala Refining Services (IRS).” The Group’s strong performance during the year was anchored by the operational turnaround at Impala Rustenburg, which represents approximately 50 % of the Group’s mine-to-market production. A 3 % increase in concentrate production at Impala Rustenburg, despite the contraction of the mining footprint, together with main- tained delivery from Zimplats, Mimosa and Marula, offset a weaker contribution from Two Rivers. Consequently, Group mine-to- market platinum-in-concentrate volumes were stable at 1,3 million ounces. Each of the Group's operations delivered positive free cash flows in FY-2019 except Mimosa, where working capital changes impacted sales receipts and hence free
clude the first phase without disruption and to consider the next phase, which will focus on the planned closure or outsourcing of 1 Shaft and the closure of 9 Shaft, which is nearing the end of its available mine life. Implats notes that the construction phase of Impala Rustenburg’s 20 Shaft capital project was concluded during the year, while the 16 Shaft project reached 92 % completion at year-end. Both shafts are producing more than 50 % of targeted steady-state production and management focus has moved to creating the required mineable face length to complete the pro- duction ramp-up. According to Muller, the focus in 2020 will be on advancing the phased restruc- turing of Impala Rustenburg while taking advantage of the operational improve- ments realised over the past year and maintaining delivery from all other Group operations. “Our project focus will be centred on 20 Shaft, ensuring that the con- tinued commitment to invest and operate is matched with improved project delivery and accountability,” he said. Resources, has established a team of expe- rienced experts on the ground in Zimbabwe headed by Troy Wilson, a widely recognised coalbed methane (CBM) expert, with over 20 years’ experience across exploration through to production. Arcadia’s primary source of power sup- ply is from the national electricity grid that is owned and operated by Zimbabwe Electricity Transmission & Distribution Company (ZETDC),whose main power distribution lines run adjacent to Arcadia. Prospect has secured Arcadia’s required supply at this interconnection. The MOU provides Arcadia with optionality for power supply and competitive tension for future supply agreements.
Prospect signs MOU on power supply for Arcadia African lithium developer Prospect Resources, listed on the ASX, has signed a Memorandum of Understanding (MOU) with African Continental Minerals (ACM) for the supply of power to the Arcadia lithium project near Harare, Zimbabwe from ACM’s ‘Coalbed Methane Gas to Power Project’. The MOU is non-binding and sets out the key terms for a subsequent formal off- take agreement as the Arcadia project is developed. The MOU’s key terms include: an agreed term of five years from the commencement date (to be outlined in a definitive agreement); a minimum supply of 20 MW daily power to meet all of Arcadia’s
September 2019 MODERN MINING 5
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