| Tue 12 Apr 2011, 16:00 | | PAM - Palabora Mining Company Limited - First quarter 2011 - operations |
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PAM
PAM - Palabora Mining Company Limited - First quarter 2011 - 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")
FIRST QUARTER 2011 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
2Q 3Q 4Q 1Q FULL FULL
1Q
2010 2010 2010 2010 2011 YEAR YEAR
2009 2010
Palabora mine
Tonnes hoisted 2,839 2,748 2,812 2,838 2,601 11,538 11,236
(`000 tonnes)
Ore treated 2,783 2,861 2,887 3,126 2,845 11,330 11,657
(`000 tonnes)
Average ore 0.66 0.64 0.64 0.63 0.67 0.64
grade: copper 0.66
(%)
61.8 57.9 61.1 65.2 58.4 270.8 246
Copper
concentrates
produced (`000
tonnes)
Average 29.8 31.1 31 29.5 29.5 30.5 30.3
concentrate
grade: copper
(%)
Copper in 18.4 18 18.9 19.3 17.3 82.6 74.6
concentrates
(`000 tonnes)
Palabora
smelter/refinery
New concentrate 57.7 59.6 61.4 62.1 62.3 266.6 240.8
smelted on site
(`000 tonnes)
New copper 12.4 14.6 14.3 14.4 14.7 65.9 55.7
anodes produced
(`000 tonnes)
Refined new 12 13.8 14.7 17.5 14.8 69.4 58
copper produced
(`000 tonnes)
Joint product:
Magnetite 754 780 764 695 880 2,845 2,993
concentrate
(`000 tonnes)
By-products:
Nickel contained 18 15 15 24 27 95 72
in products
(tonnes)
Copper sold as 2.5 2.6 0.5 4.3 1.3 17.5 9.9
concentrate
(`000 tonnes)
Vermiculite
plant
Vermiculite 54 46 51 45 196 196
produced (`000 43
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, mines and exports magnetite and operates a vermiculite mining
and processing facility.
Daily ore hoisted from the underground mine averaged 28 903 tonnes for the
quarter ended 31 March 2011, 8% lower than the previous quarter and the
corresponding period in 2010. A total of 2 601kt of ore was hoisted during the
quarter with a copper grade of 0.66%. Production during the quarter was
impacted by winder slowdowns in January to prevent further damage until both
winder drums are replaced. The replacement of the north winder drum occurred
in February, one month ahead of schedule. The south winder drum will be
replaced during April. Ore hoisting rates are expected to improve over the
remainder of the year from May once the south winder drum is replaced and
commissioned.
Ore treated was 2 845kt, 9% lower than the previous quarter and 2% higher than
the corresponding period in 2010. The ore treated was in line with mill supply
which was affected by the winder slowdowns and February north winder drum
replacement.
Copper concentrate production was 58.4kt, 10% lower than the previous quarter
and 6% lower than the corresponding period in 2010. The decrease was due to
the primary crusher failure following fuse damage which reduced slag
processing and was in conjunction with lower material from the underground due
to the winder drum replacement. One week`s slag processing was lost as a
result of the crusher failure.
Copper in concentrate production was 17.3kt, 10% lower than the previous
quarter and 6% lower than the corresponding period in 2010. The reduction from
the previous quarter was due to processing lower grade slag and lower material
throughput whilst the decrease from the corresponding quarter was due to the
planned absence of low grade concentrate pond reclamation.
New concentrate smelted was 62.3kt and new anode production was 14.7kt. New
concentrate and anode production remained in line with the previous quarter
and was 8% and 19% higher, respectively, than the corresponding period in
2010. Production in the corresponding quarter was affected by Wolff cranes
availability and acid plant challenges.
Refined copper production was 14.8kt and in line with anode supply but 15%
lower than the previous quarter due to utilisation of inventory in the
previous quarter. Refined copper production was 23% higher than the
corresponding period in 2010 in line with higher anode supply. The refinery
operated an average of 11.4 sections for the quarter ended 31 March 2011
compared to 12.7 in the previous quarter and 9 sections in the corresponding
period in 2010.
Magnetite
Magnetite production was 880kt and 27% higher than the previous quarter
following the reopening of the Brakspruit Bridge. Production was 17% higher
than the corresponding period in 2010 as a result of improved magnetite
reclaim and processing rates.
Vermiculite Operations
Production was 43kt and 4% lower than the previous quarter and 20% lower than
the corresponding period in 2010 as a result of wet feed due to wet weather. A
complete load and haul shutdown to address minor safety issues relating to
mining activities and minor processing challenges had a minor impact on
production.
The above information has not been reviewed or reported on by the Company`s
auditors.
Phalaborwa
12 April 2011
Sponsor: Barnard Jacobs Mellet Corporate Finance (Proprietary) Limited
Date: 12/04/2011 16:00:03 Produced by the JSE SENS Department.
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