Jupiter Mines Limited Announces Completion of Expansion Concept Study of Tshipi Borwa Manganese Mine
January 07, 2020 at 03:22 am IST
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Jupiter Mines Limited announced that the concept study into the expansion of the Tshipi Borwa Manganese Mine has been completed. A comprehensive feasibility study will commence shortly. The feasibility study will be based on a production profile of 4.5 million tonnes, a 50% increase on the current 3 million tonne production level. Production profiles in excess of the Base Case Scenario were explored as part of the concept study, however the infrastructure required is significantly less complex, will involve a shorter timeframe to implement, has a lower capital requirement, there is less reliance on road transport and the legal requirements are significantly more favourable from a timing perspective for the Base Case Scenario. Some of the major constraints to go beyond the Base Case scenario include potential mining constraints, the lack of water in the area and logistical constraints in the medium term. Infrastructural optionality will be considered for substantial production upside beyond the Base Case Scenario, to be leveraged upon in the future, should the constraints and market dynamics change. Total capital expenditure required for the expansion is estimated to be R1.025 billion (+- 30% level of confidence). This expenditure provides for some of the infrastructure required for the production optionality mentioned above. Subject to the completion of the feasibility study and commercial process (approximately 1 year), Tshipi would expect to reach steady state exports of 4.5 million tonne in 3 years, with an increase in manganese ore exports in year 2 and year 3, via a stepped approach.
Jupiter Mines Limited is an Australia-based independent mining company. The Company, through Tshipi e Ntle Manganese Mining Proprietary Ltd (Tshipi), operates the Tshipi manganese mine, an open pit mine in the Kalahari Manganese Field (KMF) located in the Northern Cape of South Africa. Tshipi is operating at a production run-rate of approximately 3.3 million tons per annum (Mtpa), being is a manganese mine in South Africa. Tshipi produces lumpy and fines manganese ore product with average grades of around 36.5% and 35.5% respectively. Tshipi's logistics operations allow it to adapt export quantities to market conditions. Tshipi uses a combination of rail and road transport to transport processed manganese ore from the mine to various ports, including Port Elizabeth, Saldanha, Cape Town, Port Elizabeth and Durban in South Africa, and Ludertiz in Namibia.