AMN - SOUTH AFRICA: Work starts on tailings at Easterns

Lonmin has secured competitive funding of $50 million for the Bulk Tailings Treatment (BTT) project at Easterns in South Africa through a specific project finance metal streaming arrangement. The first tranche of project funding of $9 million has been received and work has started on the project.

The BTT project involves the re-mining of Lonmin’s Easterns tailings dam. The project entails the reprocessing of 26 million tonnes of tailings material at a rate of 300,000 tonnes/month. Commissioning and ramp up to full production is expected during the 2018 financial year.

Once at steady-state, the project is expected to produce about 29,000 oz/year of platinum or some 55,000 ounces of PGM, at a yield of 0.5 grams/tonne (5PGE+Au) (grade of 1.42 grams/tonne at a recovery of 35%). The project is part of Lonmin’s business plan and is expected to produce the lowest cost ounces in the Lonmin portfolio.

Lonmin CEO Ben Magara says: “The BTT project is part of our strategy to focus on low cost ounces to maximise our cash position and create value for all our stakeholders.”

Lonmin, which is listed on London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.

Lonmin’s operations are situated in the Bushveld Igneous Complex in South Africa, where more than 70% of known global PGM resources are located.

http://www.lonmin.com

News courtesy of International Mining