OPERATIONS • move in stages , still utilising Eskom ’ s services as it continues to offer the cheapest energy currently , as well as diesel – but with a view to building a 100MW solar farm in 2024 combined with long term plans to use the wind that is readily available in our region .
To this end , we have been in discussions with a party planning to develop a wind farm in our area . Should this project not come to fruition , we have in the meantime started a feasibility study for our own alternative wind farm on the mountains nearby . The fact that we have some of the best wind resource in the world is a huge advantage , especially between around seven at night and four in the morning .
We are also currently building a new 8MW generator farm which will augment Eskom ’ s power supply to us . So , if one or two of the generators go down , the rest can still supply power , as each function as an island on its own within the bank .
The plan from beginning to end involves an optimisation process with a natural progression from diesel augmenting electricity from Eskom , in turn augmented by solar power to eventually move away from unsustainable diesel to the windfarm which will ultimately supplement the solar farm .
SM : Do you have infrastructure already in place to support this plan and what kind of cost do you anticipate ? JN : Yes , after we have attained the required environmental authorisations , we plan to build the solar farm on a large old company-owned tailings dam near O ’ kiep . There is already a cable that runs from the dam to Nababieb where our processing facilities are , so we have that infrastructure in place already . We will have to make use of the municipality ’ s current grid as well as the Eskom grid in the area and will need to install our own mini grid too .
Then , once the feasibility study for the wind farm is complete and we have obtained the relevant authorisations for that stage of the project , the idea is to put up six of the smaller wind turbine type at an approximate cost of around R20-million each , including installation costs . This spend will ultimately make our solar farm more cost effective in that the wind back up will mean we do not need battery storage in the long term for the solar plant . Battery storage could drive the solar farm cost up from around R100- million to R600-million .
SM : Jan , at the junior mining indaba you mentioned the importance of strategic local partnerships . Apart from the potential wind farm negotiations , do you have any other partnership plans ? JN : We are talking to funding organisations and we have had discussions with Total Energy . There are also other entities that have shown interest in our plans . However , if we have no choice , we will fund it ourselves – with the cash flows that are coming , we will have that ability . Partnerships will only make sense if we are able to maintain security of power .
The goal is to be totally independent of Eskom within the next five years with our own generating capacity of 30MW of power already in hand at the three-year mark at an approximate spend of around R350-million on the whole project .
This independence will safeguard the business and the current 400 and future approximate 400 jobs in an area with over 70 % unemployment rates between the ages of 19 and 24 . We have future plans too with our social and labour plan involving a reverse osmosis plant that will clean up mine water to provide for a possible agricultural project that could give another 1 000 people plus a job . Security of power will also enable us to pursue future plans , as we hope to install a small smelting and roasting plant to beneficiate further down the line .
SM : We wish Copper 360 well in their growth journey . It is clear that the spin offs of success will benefit both the local community , the South African economy and the global drive in the fight against climate change . JN : Thank you – the bottom line is that the more junior miners in the area that can come into production – the better , for all of those reasons , and also to put the Northern Cape back in its rightful place as one of the world ’ s greatest sources of copper for the future . •
References :
1 . Strategic developments in info box 2 . Key highlights from condensed consolidated Copper 360 key highlights financial results for six months period ended 31 August 2023
Copper 360 2023 strategic developments :
• The merger with Shirley Hayes-IPK ( Pty ) Ltd via a reverse takeover was completed simultaneously with the listing of Copper 360 on the Alt X of the JSE on 21 April 2023 and an equity capital raising by way of private placement of R157.5-million . The acquisition of O ’ Okiep Copper Company (“ OCC ”) was also completed following the listing of Copper 360 .
• Significant maiden Measured and Indicated Mineral Resource statement of 60 800 tonnes of contained copper metal at Rietberg Mine resulting in higher than originally planned production output requiring a new mine design and increased capital requirement of R95-million .
• Re-design of Modular Flotation Plant ( MFP 1 ) from processing copper slag and sulphide ore to a circuit only treating sulphide ore as a result of increased mine production planned from Rietberg Mine .
• Construction of Modular Flotation Plant ( MFP 1 ) remained on schedule and within budget to start production in Q4 2024 FY with contained copper output capacity now forecast to increase by 105 % to 7 975tpa compared to original plan of 3 899tpa .
• Increased copper cathode production performance from SX / EW ( tonnes increased by 145 %, grade increased by 3 % and recoveries increased by 7 %) compared to the previous reporting period in February 2023 .
• The 2025 FY will see the company target EBITDA in excess of R650-million together with major resource upgrades to improve mining flexibility and growth .
• As at 31 August 2023 , total capital spent amounted to R120-million of which R93-million was spent on MFP 1 and the Rietberg mine , with R27-million spent on SX / EW plant optimisation projects .
Being the ‘ first mover ’ in low-cost capital projects with high margins and high returns , characterised by simplicity and reliability , is the differentiator . www . africanmining . co . za African Mining Publication African Mining African Mining • January 2024 • 65