PALABORA UNDERGROUND PRODUCTION PROGRESS
PALABORA MINING COMPANY LIMITED
(incorporated in the Republic of South Africa)
Registration number - 1956/002134/06
Share Code: PAM ARC ISIN: ZAE000005245
("Palabora" or "the Company")
PALABORA UNDERGROUND PRODUCTION PROGRESS
Palabora announced today further progress achieved with the ramp up of its
underground mine to design production levels of 30 000 tons of ore per day.
As previously announced, production ramp up has been constrained by operating
difficulties, including the inability to clear drawpoints efficiently that have
been blocked with poorly fragmented, large rocks. The company is implementing
an integrated improvement action plan to address these difficulties. As a
consequence of this action plan, production volumes have improved to an average
of 16 900 tons of ore per day during July and 18 900 tons of ore per day in
August. The underground mine achieved a record weekly production rate of 20 800
tons of ore per day during the final week of August, including a record daily
production rate of 30 038 tons in one day. Further work is ongoing in order to
reach the target level of 30 000 tons per day on a consistent basis by the end
of 2003.
As previously announced, the Company cautions that the aggregate impact of the
limited production from the underground mine, the strength of the Rand against
the US Dollar and the commencement of depreciation of the underground mine
capital costs, partly offset by the cost saving actions taken by the Company,
will impact negatively on the earnings of the Company in 2003.
For further information please contact the Managing Director, David Sadler, on
015 780 2802
Phalaborwa
1 September 2003
Sponsor:
Barnard Jacobs Mellet Corporate Finance
(Pty) Limited
Date: 02/09/2003 07:05:11 AM
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