COVID- 19 impacts Khoemacau operations
Khoemacau Copper mine, Botswana’s newest copper producer, has seen its operation being heavily affected by COVID- 19, which has restricted movements of goods and persons globally. The mine, which is located in the North Western region of the country, was commissioned last year, right at the height of the pandemic. “Mining operations have been impacted by the Covid- 19 pandemic, with effects from local and international travel restrictions, ( in particular affecting the Company’s mining contractor based in Western Australia),” noted the miner. The Johan Ferreira led mine has explained quarantines and lock downs have complicated underground operator availability and numbers, while delays on mining fleet delivery also being experienced, as global supply chains have tightened. The impact on mining was more significant in the latter part of 2021 as stopping operations ramped up. According to a statement, this reflects the fact that stopping operations are more reliant on the availability of certain skilled operators, which was especially limited as was the availability of appropriate and fit for purpose equipment. This coincided with typical ramp up trouble- shooting related to refining drilling and blasting practices in a new ore body, said Khoemacau. However, the Cupric Canyon Capitalowned company has not folded arms amid the COVID- 19 challenges. There are some extensive initiatives underway, which include working closely with the mining contractor, to ameliorate constraints to mining ramp up.
This January, there was improvement in operator availability, with a strong uptick in the performance of stopping operations, following a decline in Covid- 19 impacts after the December 2021 spate of infections. Through the end of Q4 2021 and into 2022 mining operations have reached some 40percent of design production rates. Meanwhile, as far as production is concerned, the company expects operations to achieve full production by the 4th quarter of 2022. On an annualised basis, full production will comprise between 60 000 and 65 000 tpa copper and 1.8 to 2.0 Mozpa of silver payable in concentrate.
As for funding, already $ 285.0 million of Senior Debt and Overrun Facility funding and has $ 26.0 million of undrawn advanced payments under its $ 265.0 million Silver Stream. The company does expect to draw the balance of the advance payments under the Silver Stream in first quarter of 2022, along with some shareholder equity, for general working capital purposes. Khoemacau which is also busy developing and commissioning the current operating mine, has also been advancing the PreFeasibility Study and associated resource drilling for its Expansion Project. The Expansion would involve expansion of the Zone 5 Mine to operate all 3 declines simultaneously, development of new mines at Zone 5 North, Zeta NE and Mango NE and the construction of a new process plant at the Zone 5 Mine. Work has also commenced on options for renewable power generation. The viability of various alternatives is being investigated along with an assessment of the various implementation alternatives and operating models, said a statement. Khoemacau is connected to the Botswana Power Corporation’s power grid.