| Wed 20 Jul 2005, 9:54 | | Palabora - Second quarter 2005 - operations overvi |
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Palabora - Second quarter 2005 - 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`)
SECOND QUARTER 2005 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
2Q 3Q 4Q 1Q 2Q 1H 1H
2004 2004 2004 2005 2005 2004 200
Palabora mine
Tonnes hoisted (`000 1,910 2,405 2,464 2,335 2,620.2 3,743 4,
tonnes)
Ore treated (`000 1,897 2,345 2,314 2,156 2,459.1 3,998 4,
tonnes)
Average ore grade: 0.74 0.75 0.73 0.72 0.712 0.75 0.
copper (%)
Copper concentrates 35.4 64.2 52.2 48.0 48.44 71.3 96
produced (`000 tonnes)
Average concentrate 28.3 27.7 30.6 29.3 32.19 29.0 30
grade: copper (%)
New Copper in 12.0 14.3 16.0 14.1 15.59 20.7 29
concentrates (`000
tonnes)
Reclaimed Copper in -2.0 3.5 0.0 0.0 0.0 0.0 0.
Concentrates (`000
tonnes)
Palabora
smelter/refinery
New concentrate smelted 68.0 59.0 67.0 75.2 71.72 127.4 14
on site (`000 tonnes)
New copper anodes 19.7 14.4 17.3 20.0 19.35 35.5 39
produced (`000 tonnes)
Refined new copper 17.2 16.2 16.2 18.7 18.99 35.1 37
produced (`000 tonnes)
By-products:
Magnetite concentrate 160 144 165 201 188.9 265 38
(`000 tonnes)
Refined nickel sulphate 37 36 41 34 57.5 90 91
(tonnes)
Vermiculite plant
Vermiculite produced 51.5 52.7 50.8 48.1 53.64 89.9 10
(`000 tonnes)
The underground mine had a stable and improved quarter. Average daily production
was 28,794 tonnes and represented an 11% improvement over the previous quarter
and 37% compared to the corresponding period in 2004. In total 2,620,224 tonnes
of ore were hoisted. New monthly and daily records of 992 162 and 42,495 tonnes
were achieved in the period respectively. The copper grade averaged 0,71%, 1.4%
below the previous quarter and 4.2% below the corresponding period last year,
but still within the statistic variance of the ore reserve estimate.
Milling rates lagged the increase in mine production in May and June, resulting
in 115,000 tonnes increase to surface stockpiles levels. Concentrate production
increased by a smaller margin than feed tonnage, due to higher copper grade
targets. Target grade was increased from plan of 29% to 32% in the second
quarter to maximize smelter output at the high copper price.
Copper in concentrates increased by less than feed tonnage, as a result of small
reductions in headgrade and recovery. Overall concentrate recovery decreased by
1% due to a 3% increase in concentrate grade above plan, and an additional 1% as
a result of above plan dolerite tap off, which has since been discontinued.
The smelter production was lower in this quarter compared to the first quarter
for 2005 due to planned maintenance that was carried out on the waste heat
boilers and one of the anode furnaces. However, the quarter was ended with
production targets being exceeded for the month of June.
Refined copper production was in line with anode supply from the Smelter and
improved from the previous quarter. Performance of the first half of 2005 was
better than 2004 due to increased production throughputs.
Vermiculite Operations
Vermiculite production in the second quarter was in line with plan and 4% higher
than the corresponding quarter for 2004. Production continued to improve due to
the recent review of the mining sequence to enhance recoveries of coarser
grades. The improved recoveries achieved across the plant were maintained in the
second quarter and will remain as the target for 2005. Market demand for the
coarser grades continues to grow and places pressure on supply chain stocks.
Magnetite
Local sales of coal washery magnetite were 35% higher in the second quarter
compared to the first quarter of 2005. Rail shipments of export magnetite were
20% below the first quarter levels. Overall production for the first and second
quarters was 20% below plan as a result of lower export magnetite sales.
For further information please contact the Managing Director, Keith Marshall, on
+27 (0) 15 780 2802.
Phalaborwa
20 July2005
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 20/07/2005 09:51:25 AM
Produced by the JSE SENS Department
