ASX-listed Jupiter Mines has completed the concept study into the expansion of the Tshipi Borwa Manganese mine in South Africa.
A comprehensive feasibility study, expected to commence shortly, will be based on a production profile of 4.5 Mt (the base case scenario), a 50% increase on the current 3 Mt production level.
Production profiles in excess of the base case scenario were explored as part of the concept study, however the infrastructure required is significantly less complex, will involve a shorter timeframe to implement, has a lower capital requirement, there is less reliance on road transport and the legal requirements are significantly more favourable from a timing perspective for the base case scenario.
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Some of the major constraints to go beyond the base case scenario include potential mining constraints, the lack of water in the area and logistical constraints in the medium term.
Infrastructural optionality will be considered for substantial production upside beyond the base case scenario, to be leveraged upon in the future, should the constraints and market dynamics change.
Total capital expenditure required for the expansion is estimated to be R1.025 billion (+- 30% level of confidence). This expenditure provides for some of the infrastructure required for the production optionality mentioned above.
Subject to the completion of the feasibility study and commercial process (approximately 1 year), Tshipi would expect to reach steady state exports of 4.5 Mt in three years, with an increase in manganese ore exports in year 2 and year 3, via a stepped approach.
The Tshipi Borwa mine is an open pit manganese mine in the Kalahari Manganese Field located in the Northern Cape of South Africa and is operated by Tshipi é Ntle Manganese Mining.
Approximately 80% of world's known economic manganese resources are contained in the Kalahari manganese field in South Africa. The open-cut mining operation is located just north of Sishen and is adjacent to South 32's large open-cut Mamatwan mine that has been operating for decades.
The Tshipi Borwa mine exported a company record breaking 3.51 Mt of manganese ore in FY19 and production has been steadily growing over recent years.
African Mining and Crushing is conducting all crushing and screening operations at the Tshipi Borwa mine.