Reporting on its activities during Q2 2016, ASX-listed Syrah Resources says that US$22,9 million was spent on the Balama graphite project in Mozambique, increasing total project development expenditures to US$47,1million as at 30 June 2016. An additional US$60 million in development expenditures have been committed, which brings total actual and committed capital expenditures to US$107 million, against a revised capital cost estimate of US$175 million for the project.
Mining fleet mobilised on site at Balama (photo: Syrah Resources).
According to Syrah, development activities at Balama continue to progress well with the detailed engineering and design on schedule for completion this month (August). Major procurement activities are now complete with mechanical equipment and structural steel deliveries to Balama having commenced. Regular visits to key equipment and material suppliers are being conducted to ensure that delivery dates and quality standards are being maintained.
Notices of Award have been issued for the major construction contract (Structural, Mechanical and Piping (SMP)) and various operational contracts (including mining, transport and logistics, fuel supply and laboratory services).
Sealing of the 7 km access road is complete and work is progressing on the construction of the internal plant site roads. Process plant and infrastructure concrete works are well advanced with approximately 3 400 m3 of concrete poured in all major areas (ore bin, primary crushing facility, primary mill and flotation circuit) during the quarter.
Clearing for the construction of the Tailings Storage Facility (TSF) is substantially complete and construction of the facility has begun.
There has been a substantial ramp up of key personnel with approximately 830 direct staff and contractors currently working on site. Ongoing recruitment of qualified Mozambican nationals continues to strengthen the team, says Syrah.
The site has now achieved over 1 million hours worked without a Lost-Time Injury.
The Balama project is situated in Cabo Delgado Province in northern Mozambique, some 200 km west of the port town of Pemba. According to the feasibility study on Balama, the project – which will employ simple open-pit mining – will have a production of over 350 kt/a.
