HomeBase MetalsKhumani's 6-billion- tonne expansion

Khumani’s 6-billion- tonne expansion

Construction underway
at the Khumani iron
ore mine
Johannesburg, South Africa — MININGREVIEW.COM — 01 September 2008 – Assmang Limited – which is jointly held by African Rainbow Minerals (ARM) and Assore Limited – says approval has been received for the start-up capital programme for the additional 6-million-tonne expansion project at its Khumani Iron Ore Mine in the Northern Cape Province.
This follows the successful completion of the Khumani mine expansion pre-feasibility study that shows significant value, given conservative iron ore pricing assumptions.

An ARM Ferrous news release issued here today said the feasibility study on the project was expected to be completed in the second quarter of the 2009 calendar year and, pending a positive outcome, final approvals would then be sought from the respective boards for the official commencement of the expansion.
The news release pointed out that, should the expansion proceed, Khumani mine would increase its capacity from the current level of 10 million tonnes per annum to 16 million tonnes per annum.

“Total capital expenditure for the expansion project is estimated at R7.3 billion,” said the release. “Approval of the initial capital of R1.2 billion will enable the mine to order long-lead items, which will in turn assist in the rapid construction of the project,” it added.

ARM Ferrous went on to explain that, of the 6 million tonnes expansion, 4 million tonnes would be for export and 2 million tonnes for the domestic market. Assmang had received a commitment from Transnet to extend the current iron ore export allocation from 10 mtpa to 14 mtpa, increasing Assmang’s export capacity accordingly. This would dovetail with the iron ore channel expansion from 47 mtpa to 60 mtpa.