Name and Location
Tshipi Borwa manganese project, Northern Cape, South Africa.

Client
South African broad-based black economic-empowerment (BBBEE) company Ntsimbintle Mining owns 50.1% of Tshipi é Ntle Manganese Mining (Tshipi) and Jupiter Mines owns 49.9%.

Ntsimbintle represents many divergent BBBEE shareholders, including Safika Resources, Nkonjane Economic Prospecting and Investments, John Taolo Gaetsewe Development Trust and ASX-listed OM Holdings.

Project Description
The Tshipi project, located about 20 km south-west of the mining town Hotazel, in the Kalahari manganese field, is an advanced mining development project, with a defined mineral resource estimate of 163-million tonnes grading at 37.1% manganese. Of the total resource, 62-million tonnes are classified as indicated resources and the remainder as an inferred resource.

The ore is contained within a 30-m- to 46-m-thick mineralised zone, which occurs along the entire strike length of the Borwa property.

Tshipi is an openpit mining operation using a standard truck-and-shovel opencast mining approach. The Borwa mine property is located adjacent to the Mamatwan openpit manganese mine, which has been operating for more than 47 years. Total run-of-mine ore tonnes are planned at 2.4-million tonnes a year. There are sufficient resources to ensure a 60-year life-of-mine at this production rate.

The mining of the openpit has been outsourced to Aveng Moolmans. All the other parts are being run on an owner-operator basis.

Tshipi has constructed and commissioned its own dedicated rail loading facility, which has joined the existing transport rail line a few kilometres from the site.

Value
The project cost R1.7-billion to develop.

Duration
Mine development started in 2011, with first ore mined in October 2012 and first manganese exported in December 2012.

Latest Developments
Despite the challenges of building a new project, Tshipi is achieving mine production to satisfy the Transnet rail and port allocation. During the coming financial year, Tshipi expects to produce and ship an estimated 1.7-million tonnes.

In September 2013, Tshipi entered a joint venture agreement (JVA) with Singapore-based OM Tshipi OMT. The JVA provides for the marketing of the manganese ore produced by Tshipi, and is jointly owned by Jupiter
Kalahari, Ntsimbintle Mining and OM Materials Trades. In conjunction with the execution of the JVA, Tshipi entered into a take-or-pay offtake contract with OMT for all of its available production for the next two years, extendable at the option of the parties.

Key Contracts and Suppliers
Aveng Moolmans (removal of the overburden and drilling, blasting and hauling the manganese ore); Senet (engineering, procurement and construction management, or EPCM) took over the EPCM of the project in January 2013.

On Budget and on Time?
Although the mine is currently producing, the updated project schedules indicate that the outstanding portions of the capital infrastructure will be fully commissioned in 2014.

The final cost is likely to be about R160-million, or 10%, higher than the original budget.

Contact Details for Project Information
Jupiter Mines, tel +61 8 9346 5500, fax +61 8 9481 5933 or email info@jupitermines.com.
Tshipi é Ntle Manganese Mining, tel +27 11 706 9004.
Senet, tel +27 11 409 1300 or fax +27 11 409 1301.
Aveng Moolmans media contact Cheryl Whitaker, tel +27 10 202 7000, fax +27 10 207 7204 or email cwhitaker@moolmans.com.