| Wed 13 Oct 2010, 10:36 | | PAM - Palabora Mining Company Limited - Third quarter 2010 - Operations |
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PAM
PAM
PAM - Palabora Mining Company Limited - Third quarter 2010 - 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 2010 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
2Q 3Q 9MTHS 9MTHS
3Q 4Q 1Q
2009 2009 2010 2010 2010 2009 2010
Palabora mine
Tonnes hoisted (`000 2,839 2,748 2,812 8,953 8,399
tonnes) 2,978 2,585
Ore treated (`000 2,792 2,809 2,784 2,861 2,887 8,521 8,532
tonnes)
Average ore grade: 0.66 0.67 0.66 0.64 0.64 0.67 0.65
copper (%)
61.8 65.8 61.8 57.9 61.1 205.0 180.8
Copper concentrates
produced (`000 tonnes)
Average concentrate 31.1 30.5 29.8 31.09 30.10 30.5 30.6
grade: copper (%)
Copper in concentrates 19.3 20.1 18.4 18 18.9 62.5 55.3
(`000 tonnes)
Palabora
smelter/refinery
New concentrate smelted 58.5 67.3 57.7 59.6 61.4 199.4 178.7
on site (`000 tonnes)
New copper anodes 12.5 14.3 12.4 14.6 14.3 51.6 41.3
produced (`000 tonnes)
Refined new copper 13.8 15.1 12.0 13.8 14.7 54.3 40.5
produced (`000 tonnes)
By-products:
Magnetite concentrate 758.7 697.2 754.1 780.4 764.3 2,148 2,299
(`000 tonnes)
Nickel contained in 29 11.4 18.5 14.7 15.2 84 48.4
products (tonnes)
Copper sold as 3.9 4.5 2.5 2.6 0.513 13 5.6
concentrate (`000
tonnes)
Vermiculite plant
Vermiculite produced 48 50 54 46 51 146 151
(`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 30,651 tonnes for the
quarter ended 30 September 2010. The production during the quarter was 2%
higher than the previous quarter and 6% lower than the corresponding period
in 2009. In total, 2,811,615 tonnes of ore were hoisted during the quarter
with a copper grade of 0.64%, and 8,398,282 for the first 9 months of 2010 at
an average grade of 0.65%. Production during the quarter and the 9 months to
30 September has been impacted by winder availability. The North and South
winders are expected to be replaced in March and April of 2011.
Ore treated was 1% higher than the previous quarter and 3% higher than the
corresponding period in 2009.
The copper concentrate production was 6% higher than the previous quarter and
1% lower than the corresponding period in 2009. The quarterly increase was
attributed to process control improvements on the automill circuit.
The copper in concentrate production was 5% higher than the previous quarter
and 2% lower than the corresponding period in 2009. The quarterly increase
was due to production improvements on the automill circuit as well
utilisation of copper thickeners inventory. The copper in concentrate
production was 12% lower for the first 9 months of 2010 compared to the same
period in 2009 due to toll milling of non-copper bearing material. Toll
milling of low head grade copper material ceased towards the end of the
second quarter in 2010.
The new concentrate smelted was 3% higher than the previous quarter and 5%
higher than the corresponding period in 2009. The quarterly increase was
attributable to the implementation of improvement processes in the smelter
operations and to the full availability of Wolff cranes. New anode
production was lower during the first 9 months of 2010 compared to the same
period in 2009 due to on-going maintenance at the smelter.
New anode production was 3% lower than the previous quarter and 14% higher
than the corresponding period in 2009. The quarterly reduction was
attributable to the acid plant shut-down in July for annual maintenance. The
historical production increase was attributable to the breakdown of converter
number 3 in July 2009. New anode production was lower for the first 9 months
of 2010 due to on-going smelter maintenance, a shutdown associated with the
acid plant and reverb bath rebuild in July. New anode production improved in
September totalling 6kt.
Refined copper production was 7% higher than the previous quarter and the
corresponding period in 2009. The increase was attributed to utilising anode
inventory from the previous quarter.
Magnetite
Magnetite production during the quarter was 2% lower than the previous
quarter and 1% higher than the corresponding period in 2009. Magnetite
production increased for the first 9 months of 2010 due to increased feed in
the magnetite separation plant and increased reclamation rates.
Magnetite sales for the fourth quarter are expected to be adversely affected
due to the Brakspruit rail bridge collapse.
Vermiculite Operations
Vermiculite production was 10% higher than the previous quarter and 5% higher
than the corresponding period in 2009. Improved production was due to an
increase in fine and superfine grades which contributed 4.0% to the overall
production. The gain in production on the finer fraction is due to a change
in the mineralogy. The overall grade recovery was 2% higher than the previous
year.
The above information has not been reviewed or reported on by the Company`s
auditors.
Phalaborwa
13 October 2010
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Proprietary) Limited
Date: 13/10/2010 10:36:01 Produced by the JSE SENS Department.
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