The Stage Two development is proposed to commence prior to the completion of Stage One to
ensure no disruption to mining operations. The construction of Stage Two is expected to be funded
from the cash generated from Stage One with a capital cost of approximately US$3.1B. This
includes $400M for a 4Mtpa pellet plant. Cash operating costs, pre-royalties, are approximately
US$40 per tonne with the product expected to attract a revenue premium of approximately 20%.
Stage Two involves the development of the processing plant and expansion of the Mbarga mine to
extract the Itabirite hematite. The removal of the high grade hematite resource in Stage One will
act as the prestrip for the Itabirite mining as the Itabirite is directly below the high grade hematite
resource. The processing will include a proven grind and float beneficiation to produce a premium
concentrate product with approximately 47% weight recovery.
Target Itabirite concentrate product specifications utilised for the PFS were 66%Fe with 3.5% Silica.
Flotation optimisation test work continued after the Itabirite PFS design basis was set, this testwork
indicates the potential to achieve an improved concentrate quality.
A number of sites were identified for potential hydro power to deliver the estimated 350MW of
electricity required.
Seems if they fund the stage 2 from proceeds of stage 1 it will be a fairly typical mining gig. They don't have to come up with the finance for stage 2 now. The capacity of the mine is only limited by the rolling stock and crusher capacity/amount of ore delivered. Once the infrastructure is in place it is the amount of machines digging and trucking to crusher site and then loading onto train. The initial capacity of the rail/port is not in question. It will be built to take 100mtpa from the get go. Just need to deliver the ore from the various sites.
Seems a bit of a low blow(or sour grapes) to be having a pedantic dig at this stage Yowie.
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