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PAM - Palabora Mining Company Limited - First quarter 2012 -
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")
FIRST QUARTER 2012 - OPERATIONS OVERVIEW AND PRODUCTION
STATISTICS
Palabora has achieved good progress in increasing ore hoisted
from the previous and corresponding quarters in 2011 which
translated in increased ore milled compared to the respective
quarters in 2011. The ore grade was lower during the first
quarter of the year as mining tactics were altered to
alleviate convergence in the centre of the cave. This is
expected to be a temporary measure.
The Managing Director, Anthony (Tony) Lennox remarked that
whilst recoveries at the concentrator were lower, negatively
impacting on concentrate available to the smelter,
efficiencies at the smelter continue to improve having a
positive impact on the consistency of cathode production.
Magnetite trucking to Maputo, which commenced in December 2011
to complement existing rail capacity, is progressing well
resulting in a 9% increase in production compared to the
corresponding period in 2011. Production was however 3% lower
than the previous quarter due to adverse wet weather
conditions.
Full
1Q 2Q 3Q 4Q Year Q1
2011 2011 2011 2011 2011 2012
Palabora mine
Tonnes hoisted 2,601 2,715 3,024 2,403 10,743 2,759
(`000 tonnes)
Mined ore treated 2,523 2,623 2,969 2,434 10,549 2,615
(`000 tonnes)
Slag ore treated 322 341 164 411 1,238 306
(`000 tonnes)
Total Ore treated 2,845 2,964 3,133 2,845 11,787 2,921
(`000 tonnes)
Underground ore 0.65 0.63 0.63 0.64 0.60
grade: copper (%) 0.66
Slag ore grade: 1.48 1.53 1.78 1.13 1.51 1.66
copper (%)
58.4 61.2 58.2 50.1 51.8
Copper 227.9
concentrates
produced (`000
tonnes)
Average 29.5 30.7 31.2 29.9 30.3 30.4
concentrate
grade: copper (%)
Copper in 17.3 18.7 18.2 14.9 69.1 15.7
concentrates
(`000 tonnes)
Palabora
smelter/refinery
New concentrate 62.3 62.6 45.4 60.4 230.7 56.1
smelted on site
(`000 tonnes)
New copper anodes 14.7 18.2 10.8 15.7 59.4 14.7
produced (`000
tonnes)
Refined new 14.8 17.3 10.2 16.7 59.0 15.0
copper produced
(`000 tonnes)
Full
1Q 2Q 3Q 4Q Year Q1
2011 2011 2011 2011 2011 2012
Joint product:
Magnetite 880 820 744 985 3 957
concentrate (`000 429
tonnes)
By-products:
Nickel contained 27 28 23 9 87 14
in products
(tonnes)
1.3 0.4 3.0 0.6 5.3 -
Copper sold as
concentrate (`000
tonnes)
Vermiculite plant
Vermiculite 51 48 23 165 47.1
produced (`000 43
tonnes)
Total ore hoisted was 14.8% and 6.1% higher than the previous
and the corresponding quarters in 2011 respectively. The
previous quarter production was impacted by low LHD
availability which have since been resolved. Production in the
corresponding quarter was affected by the winder slow down as
both winder drums were replaced one each in the first and
second quarters of 2011.
Total Ore treated was 2.7% higher than both the previous
quarter and corresponding quarters in 2011 due to increased
ore hoisted compared to the previous and comparative quarter
of 2011 as well as improved milling rates following an
optimisation exercise in the autogenous mill circuit that
commenced during the first quarter of 2012.
Copper concentrate produced was 3.4% higher than the previous
quarter due to improved milling rates, increased slag
processed and copper recoveries but 11.3% lower than the
corresponding quarter mainly due to the effect of increased
content of slow or non-floating material in the ore milled and
marginally lower slag processed.
Copper in concentrate produced was 5.4% higher than the
previous quarter due to higher ore hoisted, increased slag
processed, improved milling rates as well as higher copper
recoveries. Production was however 9.3% lower than the
corresponding quarter in 2011 as a result of reduced slag
processed, lower copper recoveries as well as the impact of
the lower average ore grade. Recoveries were impacted by high
content of slow floating and non floating material in ore
mined.
New concentrate smelted was 7.1% lower than the previous
quarter due to the higher concentrate available following the
3rd quarter scheduled smelter shut in 2011 and 10% lower than
the corresponding quarter in 2011 but in line with available
concentrate.
New anode production was 6.4% lower than the previous quarter
in 2011 and in line with lower concentrate charged to the
smelter. New anode production was in line with the
corresponding quarter in spite of lower concentrate production
due to improved smelter efficiencies arising from the process
improvement initiatives and intervention measures implemented
since 2010.
Refined new copper produced was 10.2% lower than the previous
quarter due to lower new anode production and in line with the
corresponding quarter in 2011.
Magnetite produced was slightly lower than the previous
quarter due to adverse wet weather conditions and 8.8% higher
than the corresponding quarter in 2011 due to improved
magnetite reclamation rates to meet additional sales volumes
through trucking to Maputo port.
Vermiculite production was 104.8% and 9.5% higher than the
previous and corresponding quarters in 2011 respectively
despite wet weather conditions which disrupted mining
operations in January. Production for the previous quarter was
impacted by an unplanned two and a half week shutdown of the
furnace refractory.
The above information has not been reviewed or reported on by
the Company`s auditors.
Phalaborwa
16 April 2012
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: 16/04/2012 17:36:01 Supplied by www.sharenet.co.za
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