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PAM - Palabora Mining Company Limited - Third quarter 2011 - 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")
THIRD QUARTER 2011 - OPERATIONS OVERVIEW AND PRODUCTION STATISTICS
"I am pleased to report third quarter 2011 copper mine production
continues to steadily increase", said MD Anthony (Tony) Lennox. "Since
both winder drums have been replaced and as a direct result of the
business improvement focus on winder optimisation initiated earlier this
year, we have seen production levels rise accordingly."
4Q 1Q 2Q 3Q 9 9
3Q MTHS MTHS
2010 2010 2011 2011 2011 2010 2011
Palabora mine
Tonnes hoisted 2,812 2,838 2,601 2,715 3,024 8,953 8,340
(`000 tonnes)
Mined ore treated 2,630 2,452 2,523 2,623 2,969 8,047 8,115
(`000 tonnes)
Slag ore treated 182 386 322 341 164 484 827
(`000 tonnes)
Total Ore treated 2,887 3,126 2,845 2,964 3,133 8,531 8,942
(`000 tonnes)
Underground ore 0.64 0.63 0.65 0.63 0.65 0.65
grade: copper (%) 0.66
Slag ore grade: 2.82 1.57 1.48 1.53 1.78 2.79 1.56
copper (%)
61.1 65.2 58.4 61.2 58.2 180.7 177.8
Copper
concentrates
produced (`000
tonnes)
Average 31.0 29.5 29.5 30.7 31.2 30.6 30.5
concentrate
grade: copper (%)
Copper in 18.9 19.3 17.3 18.7 18.2 55.3 54.2
concentrates
(`000 tonnes)
Palabora
smelter/refinery
New concentrate 61.4 62.1 62.3 62.6 45.4 178.7 170.3
smelted on site
(`000 tonnes)
New copper anodes 14.3 14.4 14.7 18.2 10.8 41.3 43.7
produced (`000
tonnes)
Refined new 14.7 17.5 14.8 17.3 10.2 40.5 42.3
copper produced
(`000 tonnes)
Joint product:
Magnetite 764 695 880 820 744. 2,299 2,444
concentrate (`000
tonnes)
By-products:
Nickel contained 15 24 27 28 23 48 78
in products
(tonnes)
0.5 4.3 1.3 0.4 3.0 5.6 4.7
Copper sold as
concentrate (`000
tonnes)
Vermiculite plant
Vermiculite 51 45 51 48 151 142
produced (`000 43
tonnes)
Palabora, a member of the Rio Tinto Group of Companies, situated in the
Ba-Phalaborwa area of Limpopo, operates a large block cave copper mine
and smelter complex, mines and exports magnetite and operates a
vermiculite mining and processing facility.
Total ore hoisted increased 11% to 3.0Mt compared to 2.7Mt during the
previous quarter and 2.8Mt in the corresponding period in 2010.
Production increased following the replacement of both winder drums, one
each in the first and second quarters of the year as well as ongoing
winder optimisation initiatives. Ore hoisted per day averaged 32 848t
compared to 30 531t in the previous quarter and 30 651t for the
corresponding period in 2010.
Ore treated increased 6% to 3.1Mt compared to 3.0Mt from the previous
quarter and 2.9Mt from the corresponding period in 2010 due to improved
hoisting rates partly offset by lower slag material.
Copper concentrate production was 58kt, 5% lower than both the previous
quarter and the corresponding period in 2010 due to significantly lower
slag grade material being milled which reduced recovery. The focus in
the third quarter of 2011 was on improving concentrate grade.
Copper in concentrate production was 18.2kt, 3% lower than the previous
quarter and 4% lower than the corresponding period in 2010 due to lower
grade of slag treated. The concentrate grade increased marginally
compared to the previous quarter and the corresponding period in 2010
with year to date concentrate grade unchanged against the comparative
period in 2010.
New concentrate smelted was 45.4kt, 27% lower than the previous quarter
and 26% lower than the corresponding quarter in 2010. New anode
production was 10.8kt, 41% lower than the previous quarter and 24% lower
than the corresponding period in 2010. Concentrate smelted and anode
production was affected by the scheduled reverb furnace rebuild for the
duration of August.
Refined copper production was 41% lower than the previous quarter and
31% lower than the corresponding period in 2010 in line with anode
supply following the scheduled reverb furnace rebuild in August.
"We are pleased to report Magnetite production remains robust and in-
line with sales demand from Asia and local coal washeries, said Chief
Financial Officer Dikeledi Nakene. Over the past 6 months we have
implemented processes to match production and sales demand in order to
manage inventory levels and working capital."
Magnetite production was 744kt, 9% lower than the previous quarter and
3% lower than the corresponding period in 2010. Production remains in
line with the logistical constraints on wagon availability and the
Brakspruit Bridge repairs towards the end of the quarter under review.
The lower production has not impacted available sales volumes as
inventory is managed to ensure adequate response to train availability.
The Brakspruit Bridge was opened on Saturday 8 October 2011 with
commencement of normal train services and the cessation of trucking
operations to Gravelotte.
Tony Lennox commented, "We would like to thank the Phalaborwa community
and the local government for their patience and consideration during the
magnetite trucking operations. We safely and successfully moved a
significant amount of magnetite by truck on the Phalaborwa roads and
could not have achieved this without the assistance of the entire
community."
Vermiculite production was 48kt, 6% lower than both the previous quarter
and corresponding period in 2010 due to intermittent furnace failures
adversely affecting the plant running times.
The above information has not been reviewed or reported on by the
Company`s auditors.
Phalaborwa
11 October 2011
Investor Relations Contact: Dikeledi Nakene, Palabora +27 15 780 2277
Media Contact: Mike Mabasa, Palabora +27 15 780 2019
Gugulakhe Lourie, Rio Tinto South Africa +27 11 911 9700
Sponsor: One Capital
Date: 11/10/2011 13:05:25 Supplied by www.sharenet.co.za
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