African Mining May - June 2019 | Page 10

Projects STRATEGY UPDATE AT GOULAMINA BUSHVELD’S BFS COMPLETE Location: Mali Phase: Feasibility Resource: Lithium Location: Madagascar Phase: Feasibility Resource: Coal A definitive feasibility study (DFS) is well under way at Australian company Birimian’s Goulamina lithium project in Mali. Bushveld Minerals has completed the bankable feasibility study (BFS) for the power component of the Imaloto coal project in Madagascar. According to Prince Nyati, CEO of Lemur Holdings, this achievement represents a key milestone and shows that the Imaloto project is feasible and can deliver significant economic returns. A positive pre-feasibility study (PFS) for the project was completed in July 2018. The PFS envisaged the development of a two-million tonnes per annum (tpa) mill and mine with a minimum life of 16 years, producing 362 000tpa of spodumene concentrate. Capital cost was predicted at AUD196-million (including contingency) and EBITDA averages AUD171-million per annum. The environmental permit for the project has been granted and according to a statement by the company, the exploitation permit is the next step in the permitting process. Three areas have been targeted for completion by the third quarter of 2019 to form the basis of project design: • Mineral resources and ore reserves to improve resource categorisation allowing increases to ore reserves and to improve confidence levels in the mineral resources and ore reserves; • Metallurgical recovery and concentrate quality, the focus of which will be on improving lithium (LiO 2 ) recovery from the 70% achieved in the PFS. Spodumene concentrate quality will also be targeted. • Water and road infrastructure optimisation. Adequate quality and volume of water are key to the project and further studies will be initiated to improve confidence in the water resources available. In addition, with the transport of spodumene concentrate to port accounting for almost one third of operating costs, any optimisation in this area will yield significant benefits to the project economics. b “The Imaloto power project is the most advanced independent power project (IPP) baseload project in Madagascar. It will have transformational developmental benefits for the country’s south-west region, where the government has already implemented significant road infrastructure expansion. The coal reserve and transmission line are capable to support the generation capacity in excess of 60MW in the medium to long term as suppressed demand is unlocked in the region,” says Nyati. “Furthermore, the peaceful democratic elections in Madagascar held in December 2018 are a welcome development and a positive indication for projects in the country. With our development partner, Sinohydro, and advanced funding discussions with financial institutions, the Imaloto project remains on track to supply electricity to south-western Madagascar,” Nyati adds. Lemur and its technical advisors completed the review of the power BFS that was prepared by Sinohydro in the last quarter of 2018. b DRA PARTNERS WITH KAMOA DRA Location: DRC Phase: Development Resource: Copper Engineering contractor DRA Global has been awarded the basic engineering contract for the Kakula mine portion of Ivanhoe Mines’ greater Kamoa-Kakula Project in the Democratic Republic of the Congo (DRC). Kamoa Copper SA, a joint venture between Ivanhoe Mines, the Zijin Mining Group, and the government of the DRC, will develop the copper mine. The mine is expected to yield about six million tonnes per annum (Mtpa) in its first phase. The Kakula resource is estimated at 174 million tons at a grade of 5.62% copper. b 8 AFRICAN MINING MAY - JUNE 2019 Kakula has an estimated resource of 174 million tonnes at a grade of 5.62% copper. www.africanmining.co.za