JOHANNESBURG (miningweekly.com) – Africa-focused Goldplat will start using grid power at its Kilimapesa mine, in Kenya, as it is facing ongoing difficulties with its generators, primarily owing to poor diesel quality.

The miner has reached an agreement to pay the $200 000 installation cost for the required infrastructure to the Kenya Power and Lighting Company over 12 months.

Installation is expected to start towards the end of June and will take two months to complete.

Major improvements to the supply of grid power have also been completed by Kenya Power, which Goldplat said would have a positive impact on costs, as fewer switchovers to diesel back-up power will be required.

Meanwhile, the miner noted that it had completed the second stage installation of a new processing plant at the mine, comprising a new crusher circuit and three additional leach tanks.

“Once consistent planned production and profitability have been achieved with Stage Two, a decision will be taken regarding the Stage Three expansion,” the company stated.

Meanwhile, at its Gold Recovery Ghana (GRG) operation, Goldplat has completed the R2-million acquisition of a second-hand 3 t elution plant from a producer in South Africa.

This plant is modular, complete with all ancillary equipment and will “more-than-meet” the requirement of the company’s expanding Ghanaian operations. As such, it was deemed a better option than moving an existing 4 t plant from Goldplat Recovery (GPR), in South Africa, to GRG and the purchase of the required ancillary equipment and infrastructure.

It is estimated that the final cost of installation will now be around $1-million, compared with the initial estimate of $2-million for the plant from GPR. The elution plant has been dismantled, moved to GPR for refurbishment and is now being shipped to Ghana.

Installation and commissioning are expected to be significantly quicker than per previous plans, with commissioning now planned for the end of December, six months ahead of the milestone date stipulated by the Ghanaian government in accordance with the company’s gold licence renewal terms.

Meanwhile, speaking on South Africa’s recently introduced Mining Charter 3, Goldplat CEO Gerard Kisbey-Green said the company did do not expect the new charter to have a significant impact on its local business.

“We will leave the ongoing negotiation process in the hands of the Chamber of Mines and the larger industry players, and we will continue to focus on issues over which we have more direct control, including continued focus on increasing operational efficiencies and ultimately profitability.”