Sishen Western expansion reaches rail milestones
JOHANNESBURG (miningweekly.com) – The Sishen Western expansion project (SWEP) had progressed significantly, JSE-listed Kumba Iron Ore said on Tuesday, noting that the development remained within budget and that construction activities had been completed.
The project, which was aimed at extending the Sishen mine’s operational life, reached a major milestone as the Transnet railway line was relocated from the west of the current Sishen pit, to the far western extent of the Sishen Iron Ore Company (SIOC) property.
Transnet and SIOC concluded an agreement that would see the State-owned freight logistics group granting SIOC ownership of the surface rights over the properties where the railway line used to run and SIOC granting Transnet surface right ownership for the properties where the new railway line would be established.
The parties were currently awaiting the completion of the registration of the ownership rights by the Deeds Registry.
Meanwhile, while the SIOC was not contemplating mining activities on the now open rail properties during this year, the group had applied to Department of Mineral Resources (DMR) to include the rail properties in the group’s mining right, as the areas would be affected by prestripping from 2014.
Further, while the ore reserves in the rail properties constituted only 3.3% of the project’s total reserves, the expansion of the Sishen pit in a westerly direction could be limited, and access - in the medium- to long-term - to about 33% of the Sishen reserves could be constrained should the DMR reject the application.
Engagements between SIOC and the DMR to ensure an expeditious resolution would continue.
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