South African mining company Assmang Limited that is developing Khumani Iron Ore Mine in the Northern Cape in the western part of the country announced August 12 completion of the Khumani 10 million tons per annum (Mt/a) Iron Ore Mine on time and within budget, and subsequent decision approved to make an additional R5.5 billion capital expenditure for completion of the Khumani 6 Mt/a Expansion Project bringing total capacity to 16 Mt/a.
Of the 6 Mt/a capacity expansion, 4 Mt/a is intended for the export market and 2 Mt/a for the domestic market. Assmang has received a commitment from Transnet to extend the current Iron Ore Export allocation on the Sishen/Saldanha export channel from 10 Mt/a to 14 Mt/a, increasing Assmang's export capacity accordingly. This, Assmang says, dovetails with the Iron Ore channel expansion from 47 Mt/a to 60 Mt/a.
The Khumani Iron Ore Mine is being developed to replace the Company's Beeshoek Mine, with mine life estimated to be 30 years at a production rate of 16 Mt/a. |
