,,,,,,,,,,,,,,,,,,,,,,,,,Latest UPDATE...................... Kombat to restart operations next month
Business - News
by Ellen Albertz
KOMBAT Mine, located about 45km south-west of Grootfontein in the Otjozondjupa region, is scheduled to recommence open-pit mining next month.
Trigon Mining Namibia was awarded the renewal of Kombat Mine's licence in June for 10 years.
The company is targeting initial production of 4 000 tonnes of copper concentrate for 2022 by accessing ore from the open pit.
The copper ore will be stockpiled for the processing plant, which is expected to become operational by the end of the year.
Fanie Muller, vice president of operations, says after the company confirmed the life of the copper resource in August, its environmental management plans were approved and it could secure funding commitments.
Muller says the open-pit contractor, Tulela Mining and Construction, was last month appointed to establish the site, and completed infrastructure refurbishment.
So far, approximately N$83 million has been invested in the mine, which includes capital investment and operating costs.
“This funding has come from Trigon Canada, by way of a shareholder loan. A further N$90 million is budgeted to be spent between September and December, comprising N$52 million in capital investment, and N$38 million in operational expenses,” Muller says.
This amount will be funded by debt, he said.
The copper buyer will fund N$75 million to be repaid once the mine is operational, while the balance will be funded through a shareholder loan from Trigon Canada.
“Production and revenue generation is targeted from January next year, and the agreements with the off-taker are being finalised currently,” Muller says.
Trigon Mining Namibia will not focus on copper mining only, but also on the exploration and development of lead and zinc resources.
Through exploration and development the mine expects to extend its life of mine, which is currently 15 years.
The company holds three mining and prospecting licences, covering an area of more than 7 500 hectares in the Otavi mountainlands.
Two of these licences are for the Gross Otavi and Harasib areas, which are believed to be highly prospective for lead and zinc.
Kombat Mine produced approximately 12,46 million tonnes of copper between 1962 and 2008, at a grade of 2,62%.
The mine has, however, been under care and maintenance for the past 14 years.
Mining operations ceased in January 2008 due to low copper prices and a power outage that resulted in underground flooding.
“All the lead factors indicate the time is now to restart Kombat Mine. The copper price is at its highest in 10 years, the plant's refurbishment is well underway, and since most of the equipment is in working condition, we can do it profitably,” Muller says.
Stephan Engelbrecht, the managing director of Tulela Mining and Construction, says they have been mobilising mining and drilling equipment to execute the scope of work within the open-pit mining contract since their appointment.
They have also set up the support infrastructure.
Holding company Trigon Metals ordered more equipment from Xinhai, China, which is expected to arrive next month.
Ninety percent of the required equipment was from Namibia and South Africa, and the rest from China.
“Yes, given progress on mobilisation and site establishment of primary equipment, Tulela is on track to mine ore during October/November 2021 to support the mine's requirement and business plan,” Engelbrecht says.
Trigon mining intends to employ about 300 workers locally, and from outside the country, if necessary.
“We want to empower the local people,” says Sam January, manager of support services.