| Tue 14 Oct 2008, 16:36 | | PAM - Palabora - Third Quarter 2008 - Operations Overview And Production |
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PAM
PAM
PAM - Palabora - Third Quarter 2008 - Operations Overview And Production
Statistics
PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number - 1956/002134/06
JSE Code: PAM & ISIN: ZAE000005245
("Palabora" or "the Company")
THIRD QUARTER 2008 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2007 2007 2008 2008 2008 2007 2008
Palabora mine
Tonnes hoisted 3,041 2,822 2,699 3,026 3,086 9,023 8,811
(`000 tonnes)
Ore treated (`000 3,046 3,958 3,181 3,027 3,096 8,957 9,303
tonnes)
0.68 0.69 0.71 0.71 0.66 0.70 0.69
Average ore
grade: copper (%)
Copper 48.6 52.5 73.9 89.4 56.5 186.7 219.8
concentrates
produced
(`000 tonnes)
Average 31.0 30.7 29.9 29.2 30.3 29.6 29.7
concentrate grade:
copper (%)
Copper in 15.0 16.1 22.1 26.1 17.1 55.2 65.3
concentrates (`000
tonnes)
Palabora
smelter/refinery
New concentrate 73.9 74.1 66.4 72.3 52.5 221.7 191.3
smelted on site
(`000 tonnes)
New copper anodes 24.0 22.7 18.1 22.3 14.9 68.0 55.3
produced
(`000 tonnes)
Refined new copper 24.0 24.0 18.3 21.6 17.0 67.7 56.8
produced
(`000 tonnes)
By-products:
Magnetite 361 363 446 475 562 943 1,482
concentrate (`000
tonnes)
Nickel contained 43 45 42 26 13 59 81
(tonnes)
Copper sold as - 0.7 1.8 3.2 1 10 6
concentrate (`000
tonnes)
Vermiculite plant
Vermiculite 50 50 50 50 50 150 150
produced (`000
tonnes)
Palabora, a member of the Rio Tinto Group of Companies, situated in the Ba-
Phalaborwa area of Limpopo, operates a large block cave copper mine and smelter
complex.
Daily production from the underground mine averaged at approximately 33,545
tonnes for the quarter. The underground mine achieved a new daily average
production record of 35,916 tonnes. The production during the quarter was 2%
higher than the previous quarter and 1.5% higher than the corresponding period
in 2007. The tonnes hoisted for the 9 months of 2008 were 2% lower than the
corresponding period in 2007 mainly due to the power shortage in January and
February. In total, 3,086,125 tonnes of ore were hoisted during the quarter with
a copper grade of 0.66%, and 8,811,262 tonnes for the first 9 months of 2008 at
an overall grade of 0.69%.
Ore treated was 2% higher sequentially and 2% higher year on year mainly due to
the record mine output in August 2008.
Copper concentrate produced was 37% lower sequentially and 16% higher year on
year. A large portion of the quarterly variance was mainly due to a combination
of 88% reduction in the smelter secondary material processed and no low grade
concentrate reclaimed from 2007 pond inventory for sale compared with the second
quarter of 2008.
Copper in concentrate produced was 35% lower than the previous quarter and 14%
higher compared with the same quarter in 2007, mainly due to the aforementioned
reasons.
Due to outages (both planned and unplanned) in the acid plant, reverb and waste
heat boiler during the quarter, more emphasis was placed on concentrate
production for sale than on smelter and refinery throughput; explaining the
variances for the lower smelter and refinery outputs when compared with the
previous quarters. The refined copper produced was in line with the smelter
output (new copper and anodes produced).
The commissioning of the new nickel sulphate refining process commenced during
the quarter. The plant is being optimised and production will be ramped up
during the fourth quarter of 2008.
Magnetite
Magnetite production was 18% higher than the previous quarter and 56% higher
year on year, in line with the increased off-take agreement for export grade and
improved railing capacity.
Vermiculite Operations
Vermiculite production was consistent with the previous quarter and when
compared with the corresponding quarter in 2007.
The above information has not been reviewed or reported on by the Company`s
auditors.
Phalaborwa
14 October 2008
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 14/10/2008 16:36:18 Produced by the JSE SENS Department.
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