|
ARI
ARIM
ARM - Nkomati To Increase Production And Maintain Nickel Output
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI LSE Share code: AGM
ISIN: ZAE000054045
("ARM" or the "Company")
NKOMATI TO INCREASE PRODUCTION AND MAINTAIN NICKEL OUTPUT
African Rainbow Minerals Limited - (ARM), and LionOre Mining International -
(LionOre) 50:50 joint venture owners of the Nkomati Nickel Mine in the
Mpumalanga Province in South Africa advise that approval has been granted by the
respective boards to proceed with a project to increase monthly production in
order to maintain nickel output at 5 000 tons per month.
The Joint Venture partners are continuing to evaluate the major expansion
project (envisaged to include an ActivoxRegistered metal refinery) and it is
anticipated that this evaluation and feasibility study will only be complete in
2007. The concentrator has been designed to form an integral part of the major
expansion project in the future.
The current operation processes approximately 30 000 tonnes per month from the
MSB ore body with an output of 5 000 tonnes per annum of nickel and associated
by-products. It is anticipated that this orebody will be depleted during 2008.
A new 100 000 tons per month concentrator plant, tailings dam and related
infrastructure to mine from the disseminated Main Mineralised Zone (MMZ)
orebody, will be built at an estimated capital cost of R384 million (US$62
million), to be spent over the next 18 months. It is anticipated that full
production at an annualised rate of 5 000 tonnes of nickel will be achieved by
the end of 2007 which will continue for at least 10 years.
Mining of the MMZ reef will be from two areas; 47 000 tons per month from the
current underground infrastructure and 53 000 tons per month from surface
mining, at a combined run of mine grade of 0.58% nickel. In addition to the
nickel production, the concentrate produced will contain significant by-products
(copper, cobalt and PGM"s) and will continue to be toll refined at various
facilities around the world.
ARM"s Chief Executive Officer, Andre Wilkens said: "The decision to proceed is
in line with our growth strategy. Nickel is one of our key commodity focus
areas, the project comfortably meets our required rate of return and its
implementation will reduce the risk of a major expansion considerably."
LionOre"s Chief Executive Officer, Colin Steyn said: "The interim plan is a
common sense extension to Nkomati"s life and nickel production while both
partners continue to fully evaluate and optimise the expansion potential."
ENDS
For all investor relations queries please contact:
African Rainbow Minerals Limited
Gerhard Potgieter or Pieter Rorich
Executive: Platinum Operations Executive: Corporate Development
Office: +27 11 779 1232 Office: +27 11 779 1476
Mobile: +27(0)82 450 9917 Mobile: +27(0)82 570 5064
gerhard.potgieter@arm.co.za pieter.rorich@arm.co.za
LionOre Mining International
Colin Steyn or Peter Breese
President & CEO Managing Director
Phone: +44(0) 20 7590 8888 Phone: +27 11 463 4223
Issued by sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 20/02/2006 08:05:02 AM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
