mining news
5
06.13
German speciality chemicals group LANXESS, has
been granted New Order Mining Rights by the De-
partment of Mineral Resources (DMR) resulting in
organisational changes within the company’s min-
ing operations. These changes include the owner-
ship structure and a name change of the chrome
mining business of the DAX-listed company.
In an update to the company’s stakeholders,
LANXESS says the legal process to transfer these
rights from Bayer to LANXESS was concluded in
April. Following the completion of the transfer,
Rustenburg Chrome Mine will now conduct busi-
ness under its new name, LANXESS Chrome Mining
(Pty) Ltd, with immediate effect. Dirlem (RF) (Pty)
Ltd, which is partly owned by LANXESS employees,
will hold 26 % of the shares in the new company.
ASX-listed Kaboko Mining reports that initial
blasting has been completed at its northern
Zambian manganese project at Mansa. This
represents a major milestone towards first
production of high grade manganese ore
from the project.
The recently completed scoping study and
mine plan have been integral in development
of the operating programme and subsequent
commencement of mining activity on site.
Following site preparation and clearing of
overburden, mining operations have begun
at Mansa. Blasting has commenced on site
to expose the high grade manganese reef,
including completion of initial blasts to test
the new Autostem style explosives used. The
technology itself, apart from being much saf-
er, allows the company better contamination
control over blasted product which is ideal for
the deposit’s mineralisation structure.
Kaboko Mining is on track to finalise a
shipment of approximately 2 000 tonnes of
The Moma site showing transition onto the dunal plateau in April this year (photo: Kenmare Resources).
marked step up in HMC production output
from February to March, representing a 65 %
increase in production. This trend has contin-
ued through April and a further uplift in output
occurred during May. The increased produc-
tion of HMC has enabled the MSP to increase
production of ilmenite and zircon.
Kenmare says that 48 500 tonnes of fin-
ished products were shipped during the first
quarter, which was an exceptionally low level
of shipments for that period. In part, this was
due to low stock levels at 31 December 2012,
following a very successful shipping cam-
paign in December, and in part due to sub-
dued market demand. Shipments have since
picked up, however, with 159 000 tonnes
shipped during April and May. This rate of
shipments is expected to increase further as
the year progresses.
Taking account of the improved production
levels from existing facilities and the ramp-
up of production arising from expanded fa-
cilities, Kenmare anticipates that aggregate
production of ilmenite, zircon and rutile prod-
ucts will be in the range of 850 000 tonnes to
900 000 tonnes for 2013, all of which will be
available for shipping to customers.
Kenmare says operating and sustaining
capital costs remain a key focus of manage-
ment. Cash operating costs are tracking to
forecast of approximately US$160 million.
The average cash cost per tonne of final
product, including both operating and sus-
taining capital costs, is expected to reduce
during the course of 2013 on completion and
ramp-up of the expansion. Thereafter, post-
expansion free cash flow operating margins
before financing costs in excess of 50 % are
targeted.
In the year to date, Kenmare says it has
achieved an average of US$236 per tonne
FOB for ilmenite, including a lower priced
legacy contract and some roll-over volume
from the previous year. It is anticipated that
there will be some softening of prices in H2
2013, before an expected pick-up later in the
year as pigment demand returns to normal
patterns.
C
hrome miner adopts new name
high grade manganese product from the mine
in June 2013. The company is still waiting to
take delivery of a primary crusher (and asso-
ciated parts) shipped from China, receipt of
which will significantly increase its ability to
meet planned production.
Kabobo Mining also reports that Lyapa
Manza has been appointed as mine manager
on site at the Mansa project. He is a Zambian
Mining operations start at Mansa in Zambia
citizen with a Bachelor of Mineral Sciences de-
gree in Mining Engineering and an MBA quali-
fication and has over 20 years’ experience in
mining and project management across in-
ternational, private and public mining compa-
nies, as well as government organisations. His
more recent roles include being Mine Manager
and GM of Kariba Minerals, a Gemfields min-
ing operation, and Senior Manager (Country
Project-In Charge) of Asia Minerals Ltd, an in-
ternational manganese company.
