JOHANNESBURG (miningweekly.com) – Multicommodity natural resources company Premier African Minerals has placed an order for a $2.2-million processing plant for its 49%-owned RHA tungsten project (RHA) in Zimbabwe, advancing the miner’s goal of reopening the mine.
The process plant was designed to meet a throughput of 16 t/h or 8 000 t/m and was expected to support wolframite recovery of 82.8%.
This production rate excluded any consideration of a preconcentration circuit which, if implemented in future, could increase the plant throughput fivefold at a 20% recovery loss.
The modular plant would be built in Johannesburg by Appropriate Process Technologies, after which the modules would be containerised and trucked to site, where it was expected that the process plant would be fully commissioned by mid-2015.
The preliminary economic assessment released on October 28 modelled average gross monthly revenue before expenses of $1.78-million.
“Although the initial deposit has been paid from our cash on hand, additional finance will still be required and we continue our advanced negotiations on offtake or marketing contracts and other finance options,” commented Premier CEO George Roach.
The deposit for the plant was $1.06-million, payable in two tranches; $688 016 had already been paid and the balance of $375 185 was payable by January 15, 2015.
“In terms of our shareholders' agreement with the National Indigenisation and Economic Empowerment Fund, it is RHA that carries the responsibility of financing the mine’s construction.
“Premier's spend to date, inclusive of exploration and development costs is secured under a loan account with RHA. In the event that RHA is reliant on Premier to secure the required finance, then RHA is obliged to meet the cost of that finance,” Roach outlined.