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Palabora - Third quarter 2004 - Operations overview and production statistics
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`)
THIRD QUARTER 2004 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
The underground mine had a stable and improved quarter. Average daily
production was 26,138 tonnes, (against a plan of 30,000t) and represented a
19.7% improvement over the previous quarter. In total 2,404,696 tonnes of ore
were hoisted. A daily production record of 35,060 tonnes was also achieved in
the period. The copper grade averaged 0,75%, slightly higher (1.33%) above the
previous quarter.
Copper recoveries in the concentrator improved to 88% from 86% in the previous
quarter. The copper concentrate produced during the period included 15,300t of
Q1 & Q2 concentrate which had been placed on an internal stockpile while there
were problems with the copper filter plant.
Smelting for the quarter was impacted by acid plant shutdown, boiler failures,
secondary air preheater failure and treatment of lower grade concentrates.
Total concentrate smelted was 59,041 tonnes of which 13,642 tonnes (23%) were
purchased. Purchased concentrates contributed 29% of the new copper into the
smelter by virtue of its higher grade.
Refined copper production was in line with smelter production and inventory
draw-down during acid plant shutdown.
Demand for rod and cathode remains high from the national market and copper
revenues continue to increase due to higher realised copper prices.
Nickel sulphate production was in line with lower refinery throughputs.
PRODUCTION STATISTICS
3Q 4Q 1Q 2Q 3Q 9 9
MTHS MTHS
2003 2003 2004 2004 2004 2003 2004
Palabora mine:
Tonnes hoisted (`000 1,689 2,022 1,833 1,910 2,405 3,977 6,148
tonnes)
Ore treated (`000 3,398 2,838 2,101 1,897 2,345 8,577 6,343
tonnes)
Average ore grade: 0.53 0.63 0.76 0.74 0.75 0.57 0.75
copper (%)
Copper concentrates 43.5 46.3 35.9 35.4 64.2 117.0 135.5
produced (`000 tonnes)
Average concentrate 32.9 31.3 29.7 28.3 27.7 32.4 28.4
grade: copper (%)
Copper in concentrates 14.3 14.5 10.7 10.0 17.8 37.9 38.4
(`000 tonnes)
Palabora
smelter/refinery:
New concentrate smelted 64.0 72.5 59.4 68.0 59.0 195.2 186.5
on site (`000 tonnes)
New copper anodes 19.4 21.3 15.8 19.7 14.4 55.3 49.9
produced (`000 tonnes)
Refined new copper 17.4 20.9 17.9 17.2 16.2 52.5 51.3
produced (`000 tonnes)
By-products:
Magnetite concentrate 53 68 105 160 144 148 409
(`000 tonnes)
Refined nickel sulphate 26 38 53 37 36 114 126
(tonnes)
Vermiculite plant:
Vermiculite produced 32.5 35.6 38.4 51.5 52.7 137.6 142.6
(`000 tonnes)
Vermiculite Operations
Vermiculite production during 2003 was slowed down to be in-line with market
activities. Market demand for 2004 has however improved and matched by
production during the third quarter 2004. This represents a 38% improvement to
the corresponding quarter of 2003. Entire plant recovery was 63%, equating to
57% increase to the plan percentage.
Magnetite
Production of coal-washery magnetite fines for domestic use was supplemented
by increasing volumes of coarse magnetite sales for export to the Chinese
market. The local coal washing industry continues to show higher demand.
Zirconium Basic Sulphate (ZBS)
Shareholders are referred to the announcement published on SENS on 31 August
2004 relating to the withdrawal of Southern Ionics Incorporated (SII) from the
lease and purchase of the ZBS plant. Since then, the Board has been in the
process of considering other proposals received from third parties and
negotiations are at an advanced stage. Terms of the agreement are currently
being drafted and shareholders will be advised once the deal has been
concluded.
For further information please contact the Managing Director, Keith Marshall,
on
+27 (0) 15 780 2802.
Phalaborwa
18 October 2004
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 18/10/2004 04:19:38 PM
Produced by the JSE SENS Department
