| Tue 19 Apr 2005, 17:33 | | Palabora -First Quarter 2005 - Operations overview |
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Palabora - First Quarter 2005 - Operations overview and production statistics
PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number - 1956/002134/06
Share Code: PAM ISIN: ZAE000005245
(`Palabora` or `the Company`)
FIRST QUARTER 2005 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
1Q 2Q 3Q 4Q 1Q YEAR
2004 2004 2004 2004 2005 2004
Palabora mine
Tonnes hoisted (`000 tonnes) 1,833 1,910 2,405 2,464 2,335 8,612
Ore treated (`000 tonnes) 2,101 1,897 2,345 2,314 2,156 8,657
Average ore grade: copper (%) 0.76 0.74 0.75 0.73 0.72 0.74
Copper concentrates produced (`000 35.9 35.4 64.2 52.2 48.0 187.7
tonnes)
Average concentrate grade: copper (%) 29.7 28.3 27.7 30.6 29.3 29.0
Copper in concentrates (`000 tonnes) 10.7 10.0 17.8 16.0 14.1 54.4
Palabora smelter/refinery
New concentrate smelted on site (`000 59.4 68.0 59.0 67.0 75.2 253.4
tonnes)
New copper anodes produced (`000 tonnes) 15.8 19.7 14.4 17.3 20.0 67.2
Refined new copper produced (`000 tonnes) 17.9 17.2 16.2 16.2 18.7 67.5
By-products:
Magnetite concentrate (`000 tonnes) 105 160 144 165 201 574
Refined nickel sulphate (tonnes) 53 37 36 41 34 167
Vermiculite plant
Vermiculite produced (`000 tonnes) 38.4 51.5 52.7 50.8 48.1 193.4
The underground mining operation hoisted 2,335,700 tonnes during the quarter and
represented a 5% decline compared to the previous quarter. The main issue
affecting production was a planned shutdown (18 days) on the North winder to
replace a failing bearing in the last two months of the quarter. Average daily
production was 25,952 tonnes, and represented a 3.1% decline over the previous
quarter. A new daily production record of 38,585 tonnes was achieved during the
period. The copper grade averaged 0,72%, slightly below the previous quarter.
Copper recoveries in the concentrator declined slightly to 87.3% from 88% in the
previous quarter. Dolerite content from drawpoints was higher at 13.3% and 13.9%
in February and March, after reduced levels in the fourth quarter of 2004. Lower
bornite content in the first two months of the quarter led to lower grades
relative to the fourth quarter of 2004 to preserve recovery.
Smelter throughput was higher during the quarter following unplanned maintenance
on the Power Plant in the previous quarter. Improved operating practices were
implemented during the fourth quarter and improving the daily smelting rates.
The new copper in anodes is higher due to the increase in concentrate smelted.
Total concentrate smelted was 75,230 tonnes of which 20,960 tonnes (28%) were
purchased.
Refined copper production was in line with anode supply from the Smelter.
Average number of operating sections increased from 12 to 13 in the first
quarter of 2005.
Vermiculite Operations
Vermiculite production was in line with the plan for the quarter and 25% higher
than the corresponding quarter for 2004. A decline in coarseness of ore body
particle size distribution in the lower benches affected the plant and mine`s
capability to respond to the high demand of Medium and Fine grade. Consequently
in March the mine decided to review the mining sequence and access new areas to
enhance the production recovery of coarser grades. Overall, the improved
recoveries achieved across the plant following the initiatives implemented
earlier in the year continued and will in turn be the target for 2005.
Magnetite
Magnetite production outstripped increased demand during the period, leading to
an extended maintenance shutdown towards the end of the quarter.
For further information please contact the Managing Director, Keith Marshall, on
+27 (0) 15 780 2802.
Phalaborwa
19 April 2005
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 19/04/2005 05:26:11 PM
Produced by the JSE SENS Department
