The Palabora Copper Lift II project will progress from prefeasibility to feasibility study with a R55 million investment.
During this project stage, Palabora Copper will expend an additional R652 million on early works infrastructure and the on-going development of the twin decline ramps. The on-going development of the declines and dependent infrastructure is an essential activity to maintain Lift II as an on-going option. The total investment during the feasibility stage will be R707 million.
The Palabora Copper board has said that it is comfortable that the high standard of engineering during the prefeasibility study fulfils the required benchmark standards for large mining projects.
The feasibility work needs to meet engineering, construction, bank lender profitability and funding option standards otherwise referred to as a “bankable feasibility.”
Pursuant to the feasibility study, Palabora was requested to provide financial assistance to Palabora Copper to the value of R350 million in connection with the shareholders agreement between the two companies.