AVL South African article

  1. 206 Posts.
    Just found this article from South African mining magazine "Mining Weekly". cheers Janart.

    Miner to outsource key contracts at DRC mine

    Australian mining junior, Anvil, reports that contracts for the outsourced aspects of the Dikulushi copper-silver project in the Democratic Republic of Congo (DRC) are currently being negotiated and include the mining operation, the transportation of the concentrates from the heavy mineral seperation (HMS) plant to Mufulira, the toll smelting and refining at the Mufulira smelter of Mopani Copper Mines and the metal off-take.
    The majority of these contracts are in an advanced stage of negotiations and documentation preparation.

    Tenders for the mining contract closed on April 18, and tenders for the transportation contract have closed on May 3.

    It is expected that the mining and transportation contracts will be awarded during this month.

    The company intends to finalise the remaining contracts within the next six to eight week period Meanwhile, Anvil has announced that it has signed a definitive Letter of Offer with RMB Resources with final terms and conditions for the $4,5-million project financing facility for the development of stage one of the Dikulushi deposit.

    The company has completed the signing of all the documentation for the project financing facility.

    Anvil is continuing to develop the infrastructure required for the project with its own equity funds and will do so until mid-May 2002, when the first of the draw-downs on the RMB Resources facility will be needed.

    By that time, Anvil will have fulfilled its commitments for equity contributions to the project development.

    The firm already has all the necessary government approvals to proceed with the development.

    Construction is on track for the start of production by Auguss, at designed capacity of about 14 000 tonnes of copper and 1,1-million ounces of silver per year, at a cash cost of production of cathode copper of 36 cents per pound (after silver credits).

    Anvil has aslo awarded part B of the Dikulushi construction contract to Metallurgical Design and Management (MDM).

    Part B includes the design, supply, construction and commissioning of a 35 tons per hour heavy media separation plant, the installation of a three stage crushing circuit and all associated mine and barge facility infrastructure.

    Part A of the Dikulushi construction contract was awarded to MDM on January 29, and marked the beginning construction work on the concentrate barge docking facility at Nchelenge in early February.

    The combined value of both parts A and B of the Dikulushi construction contract, for which MDM has taken responsibility, is $2,39-million.

    The first stage of development of the Dikulushi deposit, for which the capital cost is $5,7-million, comprises of an open pit mine and HMS plant, which will treat ore at a rate of 250 000 tons a year and produce 35 000 tons to 40 000 tons of concentrate per year grading about 40% copper and 1,230 g/t silver.

    The concentrate will be shipped to the Mufulira smelter on the Zambian Copperbelt, where it will be toll treated to produce a registered LME grade A copper cathode.

    At a forecast cash operating cost for copper cathode production of 36 cents per pound (after silver credits), this places Dikulushi well within the lowest quartile of the World copper production cost curve.

    Subsequent expansion, with the addition of a ball mill and flotation circuits would be funded largely out of project cash flow and would produce a concentrate grading 60% copper and 1,935 g/t silver.

    This is expected to reduce operating costs even further.

    MDM has completed the HMS and crushing plant designs.

    Fabrication of the HMS plant has commenced in Johannesburg and a second-had three stage crushing plant, which was purchased from a Zimbabwe operation of major shareholder FQM, has now undergone a total refurbishment in FQM’s yards in Ndola, Zambia and is currently in transit to Nchelenge in readiness for shipment to the DRC.

    Anvil has recently purchased a small vehicular pontoon barge located in Northern Zambia from the Zambian Roads Department.

    This barge will be used on Lake Moero to transport construction materials for the civil works at Dikulushi as well as various pieces of construction equipment.

    It will also be used to transport a drill rig, which will be used for the dewatering program on the proposed open pit.

    In the meantime, construction of the main barge for the concentrate transport is progressing at Nchelenge.

    All sixteen barge sections are now on site, with six already on the jig being welded together.

    The two Z-Drives which were manufactured in Houston, Texas are also on site at Nchelenge and will be installed after the barge is launched.

    Construction work on the docking facility at Nchelenge on The Zambian side of Lake Moero has been completed and the initial work on the docking ramp at Mobanga, on the DRC side of the lake, has commenced.

    Surveying for the proposed open pit outline, the HMS plant and the tailings dam has also recently commenced.

    The company is continuing to assemble the small team that will manage the Dikulushi operation.

    Appointments have recently been made for the manager mining, the financial administrator and the health and safety officer.

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