24th Jun 2009 07:00
Lonmin Plc
Update on Number One Furnace
Lonmin Plc ("Lonmin" or "the Company") today provides an update on the matte run-out incident at the Number One furnace, announced on Monday 15 June.
An inspection of the Number One furnace has established that the source of the matte run-out was a water leak in one of the lower copper cooling waffle units above one of the matte tappe blocks. This unit is being replaced and a full investigation into the cause of the leak is underway.
Matte is expected to be tapped again at the Number One furnace within the previously estimated 30 days, during which time the vessel will be fully repaired, monitored and tested. Our initial total cost estimate for the repair of the furnace and the extra costs of running our Pyromet furnaces is around US$4 million. The Pyromet furnaces tapped matte on 21 June 2009 and will remain in operation until September 2009.
As a result of utilising our additional smelting capacity, we expect to process the majority of the concentrate inventory built up ahead of the Smelter during the Number One furnace shutdown before the end of the 2009 financial year. However, the shutdown will impact our ability to fully refine the remainder of this built up metal in process during that period.
As a consequence of the shutdown, it is estimated that at 30 September 2009 there could be an increase in metal in process of up to 20,000 ounces of Platinum.
- Ends -
ENQUIRIES:
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Investors / Analysts:
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Rob Gurner
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+ 44 (0) 207 201 6050
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Head of Investor Relations
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Media:
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Cardew Group
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+ 44 (0) 207 930 0777
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Anthony Cardew / Rupert Pittman
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Financial Dynamics
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+ 27 (0) 21 487 9000
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Dani Cohen / Ravin Maharaj
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