BILLION RAND BOOST FOR RBM
Dave Savides
MORE than one billion rand.
That's the positive local investment announcement from Richards Bay Minerals.
In a press release issued this week, the heavy mineral sand mining operation said that approval had been obtained for over R1-billion in funding for its Tailing Treatment Plant project (TTP). This project's aim is similar to that whereby gold has been reclaimed from mine dumps in Gauteng.
Improved knowledge on mineralogy and ore body attributes, supported by intensive test work, had resulted in this approval by the RBM Board of Directors.
The mineral separation process at RBM over the past 32 years of its operations resulted in some valuable minerals being discarded with the tailings, some 16-million tons of which lie stockpiled.
In-house research and development has now identified the technology to separate these valuable minerals from both the currently mined and stockpiled tailings.
2010 deadline
To achieve this, a new Tails Treatment Plant will be built at the Smelter site, with a smaller operation in the mining area.
Cameron McRae, RBM's Managing Director said, 'The TTP project is the first major expansion since the Mine Upgrade Project 2000 (MUP), between 1996 and 2000.
'The construction duration for the TTP is 2008–2010 and it will extend the life of the mine by another five years when it comes into production in July 2010.'
McRae called the project 'an excellent business case'.
'It will contribute to the economy of the greater KZN region by providing
further employment and local business development opportunities during the construction period, as well as into the future.
'The additional value created in RBM through this project will also benefit the new shareholders, communities and employees, with increased equity flows following the completion of the BBBEE deal, currently being finalised,' said McRae.
Power boost
'Given the current power crisis in RSA, the TTP will act as a significant insurance to continued revenue generation through the efficient production of zircon, rutile and ilmenite feedstock at low cost per megawatt usage.
'What this means when compared to the existing dredge mining process is that the TTP will consume less electricity to generate the same tonnes of production. 'To further mitigate the electricity shortage, RBM plans to generate sufficient electricity in-house to be able to supply the TTP's requirements, which is 6.5MW by 2010.'
Targets
According to McRae, a target of 35MW electricity through self generation by 2011 is achievable.
'This is still work in progress and will be implemented in phases over the period 2008 to 2011.
'Self generation will be achieved by fuelling 20 gas engines with the excess furnace gas available to generate electricity'.
'This creates exiting opportunities for further efficiency improvements by u sing the exhaust gas for further drying, or heating.'
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