| Mon 17 Jul 2006, 10:11 | | Palabora - Second quarter 2006 - operations overvi |
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PAM
PAM
Palabora - Second quarter 2006 - 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 2006 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
2Q 3Q 4Q 1Q 2Q 1H 1H
2005 2005 2005 2006 2006 2005 2006
Palabora mine
Tonnes hoisted (`000 2,743 2,672 5,415
tonnes) 2,620 2,677 2,400 4,955
Ore treated ("000 2,459 2,572 2,349 2,646 2,633 4,615 5,279
tonnes)
Average ore grade: 0.71 0.71 0.72 0.71 0.70 0.71 0.70
copper (%)
Copper concentrates 48.4 52.9 47.8 51.5 43.0 96.4 94.5
produced
("000 tonnes)
Average concentrate 32.2 31.3 31.2 29.9 30.5 30.8 30.1
grade:
copper (%)
Copper in 15.6 16.6 14.9 15.4 13.1 29.7 28.5
concentrates
("000 tonnes)
Palabora
smelter/refinery
New concentrate 71.7 75.2 82.2 42.0 83.3 147.0 125.3
smelted on site
("000 tonnes)
New copper anodes 19.4 22.7 22.4 10.0 24.0 39.3 34.0
produced
("000 tonnes)
Refined new copper 19.0 22.1 20.6 14.3 21.9 37.7 36.2
produced
("000 tonnes)
By-products:
Magnetite concentrate 189 267 231 251 296 390 547
("000 tonnes)
Refined nickel 57 37 57 35 28 91 63
sulphate (tonnes)
Vermiculite plant
Vermiculite produced 54 53 55 48 48 102 95
("000 tonnes)
Palabora, situated in the Ba-Phalaborwa area of Limpopo, operates South
Africa"s largest copper mine. After 40 years of mining from a large, open-pit
operation, the ore is now extracted in an underground operation located
immediately below the open pit. Overall copper production is supplemented by
imported copper concentrates from Zambia.
Daily production from the underground mine was affected by two four day
stoppages in the production hoists but still averaged 29,392 tonnes. This was
4% lower than the prior quarter and 2% higher than the corresponding period
in 2005. The tonnes hoisted for the first half of 2006 were 8% higher than
the corresponding period in 2005. In total, 2,674,660 tonnes of ore were
hoisted in the quarter with a copper grade of 0.70%, slightly lower than the
previous quarter. New monthly and daily average records of 1,016,383 and
33,946 tonnes were achieved in the period respectively. A record of monthly
copper units of 8,616 tonnes was also achieved during the month of June.
Total mill throughput remained in line with the previous quarter. Mill head
grade for the quarter was slightly below the average of the first quarter,
however the overall trend for the second quarter was steadier and higher than
the average for January and February. The bulk of the concentrate variance
was due to inefficiencies in the concentrate drying facility resulting in a
build up of inventories in the thickeners and drying paddocks. The drying
paddocks are currently used as a temporary measure whilst working on a long-
term solution for implementation by end of the first quarter of 2007. The
increase in the inventory of copper thickeners and paddocks accounted for 93%
of the variance for copper in concentrate delivered to the smelter.
Concentrate smelted and anodes produced in the first half of 2006 were lower
compared with the first half of 2005 as a result of the 35 day smelter
shutdown in February/March 2006. Smelting rates and copper produced during
the second quarter of 2006 increased following the shutdown to higher levels
compared with the same period in 2005.
Refined copper production was in line with anode supply from the Smelter. New
refined copper during the first half of the year was higher than new anode
produced due to the Smelter shutdown during the first quarter 2006.
Vermiculite Operations
Vermiculite production during the quarter was in line with plan and 13% below
the corresponding quarter for 2005. The main contributing factor for the
lower production during the same period for 2005 was due to the fact that the
plant feed grade had declined from 24.85% to 22%. Overall plant recovery for
the quarter remained at 69%, which was above plan. The strong market demand
for the coarser grades continues to exceed production in all market segments.
Magnetite
Higher magnetite production in the quarter was a result of an increase in
sales volumes for both coal washery and export grades.
Phalaborwa
17 July 2006
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 17/07/2006 10:11:53 AM Produced by the JSE SENS Department
