The introduction of hazard identification and risk assessment,
especially before commencing any tasks at the mine, has led
to an improvement in most safety-related measures. The
introduction of the new integrated SHEC management system
for reporting and control has augmented the safety effort. Total
lost-time injuries during the six months ended 31 December
2010 (“current period”) remained constant relative to the six
months to June 2010 (“June 2010”) at four.
The volume of ore through the plant increased by 12 percent
for the current period. This was as a result of improved mining
performance, a successful plant debottlenecking process and
fewer electrical power interruptions. The mine completed the
installation of additional on-site generating capacity towards
the end of the period so as to minimise the risk of further
electrical interruptions at a capital cost of US$1 million.
Copper headgrades decreased for the current period compared
to June 2010. This is due to the mining having moved into a
close-out area where mining stresses are particularly high
causing scaling of the hangingwall and subsequent dilution.
This area will be mined out by the end of the first quarter of
2011. Within the usual bounds of variability the ore body grade
does improve with depth.
Plant recoveries improved by two percent to 92 percent.
Management has focused on improving recoveries and
numerous interventions, primarily related to ensuring constant
flow through the float plant and improving the crushing circuit,
have resulted in good improvements.
Copper produced and sold for the current period increased by
three percent to a record 8 990 tons. All copper for the period
was sold to the Chambishi Copper Smelters under contract.
The terms are more favourable than international pricing after
taking into account the newly imposed export tax on
concentrates.
On-mine costs per ton milled were well controlled and
remained flat at US$59 per ton, assisted by the increased
volumes mined and milled. Realisation charges also decreased
by six percent per ton sold following less smelter penalties
incurred. Stated in terms of cash costs per ton of metal sold,
Chibuluma had a credible performance for the current period
as costs rose by three percent. The increase in cash costs per
ton of metal sold to US$2 932 when compared to June 2010
was due to the lower grades despite the higher volumes mined
and milled.
Capital expenditure remained relatively constant and amounted
to US$13,3 million as a result of the purchase of new mining
fleet vehicles (US$3,2 million) needed to maintain production
levels as well as increased capital spend on engineering items
required to upgrade the quality of capital equipment at
Chibuluma. In addition, Chibuluma commenced with an
exploration programme aimed at increasing the life of the mine
(US$0,6 million). Mining development remains a large
proportion of the capital spending (US$3,5 million). For the current period the Chibuluma Mine increased its cash mining
profit by 34 percent to US$47,1 million. This was driven off the
back of higher copper production, higher copper prices
received and cost control. The average copper price received
increased from US$6 436 per ton to US$8 112 per ton.
The Chibuluma Mine is well set to maintain mining and milling
volumes in the coming period. Volume restrictions, given the
increasing depth of mining and erratic power supply, will be
mitigated through careful planning and strategic interventions,
and the depth-related increases in grade will assist in
maintaining production levels. In addition, the dilution due to
the close-out areas should reduce by the end of the first
quarter of 2011. Various cost pressures will be experienced
during the coming year, mainly in the form of wages, power and
diesel costs. Capital expenditure levels are expected to remain
similar in the coming year. However, additional expenditure will
be incurred on exploration activities targeted at extending the
life of the mine.
Key results
| Chibuluma |
Unit |
Six months
Dec 2010 |
Six
months June 2010 |
12 months Dec 2010 |
12 months June 2010 |
12 months June 2009 |
| Tons milled |
(t) |
301 659 |
269 431 |
571 090 |
552 051 |
568 187 |
Headgrade
– copper |
(%) |
3,2 |
3,6 |
3,4 |
3,5 |
3,1 |
Overall recovery
– copper |
(%) |
92 |
90 |
91 |
90 |
90 |
| Copper produced |
(t) |
9 008 |
8 721 |
17 729 |
17 140 |
15 940 |
Copper sold
– total |
(t) |
8 990 |
8 702 |
17 692 |
17 181 |
15 907 |
| – into hedgebook |
(t) |
3 000 |
4 200 |
7 200 |
7 275 |
— |
| – at spot price |
(t) |
5 990 |
4 502 |
10 402 |
9 906 |
15 907 |
– hedgebook price
achieved |
(US$/t) |
7 692 |
5 308 |
6 301 |
4 912 |
— |
– average spot price
achieved |
(US$/t) |
8 322 |
7 488 |
7 964 |
7 239 |
3 876 |
On-mine cost per ton milled, net of ore
stock movement |
(US$/t) |
59 |
59 |
59 |
55 |
52 |
Copper realisation costs per ton of
copper sold |
(US$/t) |
924 |
987 |
960 |
946 |
917 |
| Total cash cost/ton of copper sold |
(US$/t) |
2 932 |
2 840 |
2 898 |
2 783 |
2 793 |
| Capital expenditure |
US$’m |
13 |
12 |
25 |
18 |
16 |
| |
|
