2nd Sep 2015 07:18
LONDON (Alliance News) - EMED Mining Public Ltd Wednesday said it has completed the site development work at the Rio Tinto copper project in Spain ahead of schedule as it continues to carry out its expansion plans, and said it has agreed to dispose of its exploration assets in Cyprus and Slovakia in order to streamline its working capital.
The company said it has completed the remaining site development work for the first phase expansion of the project ahead of schedule, which included waste pre-stripping to supply the flotation plant whilst it is being commissioned, ongoing wet commissioning at the plant and demonstrating the mining fleet capacity for the project.
The company also produced its first copper concentrate from the project at the end of July, but the product was not commercial as expected, but "successfully demonstrated that the processing plant is working well from a mechanical perspective," it said.
The ramp-up phase over the coming months will focus on fine-tuning throughput at the plant, concentrate grade and recovery until commercial concentrates are produced.
There are now 260 full time employees working on site in addition to 450 to 550 contractors who are fully mobilised and working on a continuous basis primarily on the plant for phase one expansion.
EMED said by refurbishing the existing plant and infrastructure at the site, rather than purchasing or building new infrastructure, saved the company USD62.0 million in capital expenditure.
The first phase expansion of the project will take production at the project up from its initial capacity of 5.0 million tonnes per year to 7.5 million tonnes before the end of the first half of 2016.
Once the first phase is complete, the company will begin the second phase expansion at the project. The company has already ordered new equipment for that expansion, which will push up production to 9.5 million tonnes per year before the end of 2016, subject to financing.
In order to focus on the core activities at the Rio Tinto project, the company has reached agreements with interested parties to dispose of its non-core exploration assets in Slovakia and Cyprus.
"The main goal of the disposal of these assets is to streamline available working capital and focus management time on [Rio Tinto project]," it said.
EMED shares were untraded on Wednesday morning, last trading at 3.75 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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