“The Sishen mine recovery and optimisation plan expects phased production increases from approximately 30 Mt in 2013 to approximately 35 Mt in 2014, approximately 36 Mt in 2015 and approximately 37 Mt in 2016. Production of 37 Mtpa has been confirmed in several technical studies as Sishen’s life-of-mine production capacity,” Kumba Iron Ore said.
“The company has completed a comprehensive feasibility study for the relocation of the Dingleton community and an extensive consultation process with interested and affected parties, the community and the relevant government departments. The Kumba board has now approved the plan to resettle the community in Kathu, which is expected to cost an estimated 4.2 billion rand capex (nominal) over a 4–6 year period.”
Further updates will be given at the Kumba Iron Ore’s 2013 annual results presentation on 11 February 2014.
The company also announced on Thursday that the Supreme Court of Appeal dismissed the appeals of the Department of Mineral Rights (DMR) and Imperial Crown Trading 289 (ICT) against a decision by the North Gauteng High Court with regards to the grant of a prospecting right to ICT by the DMR.
It held that Sishen Iron Ore Company (SIOC) became the exclusive holder of the mining rights in respect of Sishen mine in 2008, when the DMR converted SIOC’s old order mining rights.