Tharisa’s target is 150 000oz of PGM

Production guide for 2018

THARISA Minerals, the London and JSE listed platinum group metals (PGM) and chrome producer, has set its PGM production guidance for the 2018 financial year at 150 000 ounces.

The company said yesterday that it expected to produce 1.4 million tons of chrome concentrates – 350 000 of whom would be speciality grade chrome concentrates .

The guidance comes as Tharisa posted strong chrome and PGM production for the year to September 2017.

Tharisa said it had produced 1.3 million tons of chrome concentrate for the year ended September, up 7 percent.

PGM production for the year was at 143 600 ounces, up 8.3 percent from the previous year.

In the quarter ended September, Tharisa posted record chrome concentrate of 360 500 tons, up 8 percent quarter-on-quarter.

PGM production for the quarter was 39 000 ounces, up 10.2 percent quarter-on-quarter.

Chief executive Phoevos Pouroulis said: “Through our continued focus on mining and processing improvements and optimisation we have delivered an excellent operational performance for the 2017 financial year,” adding that there was potential for next year.

“We will be embarking on unlocking greater value through the successful transition to owner mining, primarily focusing on reducing dilution and improving feed grades from within the open-pit.”

Tharisa said it had transitioned to an owner mining model, which included the transfer and employment of approximately 900 mining contractor’s employees, was effective as of October 1, 2017.

The company announced in May that it had signed an agreement with MCC Contracts to acquire 170 “yellow fleet” machines and site infrastructure, including excavators, dump trucks and support vehicles, and transfer 900 employees from MCC for R303.3 million.

Tharisa said at the time that it had developed engineering and geological skills that were “integral” to in-house mining, and the transfer of the skilled on-site employees of MCC in their existing roles would ensure that the Tharisa transitioned to an owner mining model without interruption.

It said yesterday that, in addition to the purchase of the contractor’s mining fleet, it had supplemented the fleet with additional drill rigs, excavators and mining equipment.

Technology

In August, it said it would use its metallurgical and smelting technology to expand its business through agreements to run one of Lonmin’s chrome plants.

Tharisa said its subsidiary Arxo Metals would operate Western Platinum, a division of Lonmin K3 chrome plant, and would market the UG2 chrome concentrate produced with effect from August 2.

Pouroulis said the plant had produced 20 000 tons of UG2 chrome concentrate.

“Production from this plant is expected to exceed 200 000oz a year, the marketing and sales of which expands the basket of chrome concentrates sold by Tharisa and leverages off its established logistics and marketing platforms,” he said.

Tharisa shares were 0.26 percent lower on the JSE yesterday to close at R18.95.