(Alliance News) - Red Rock Resources PLC on Tuesday said its investee Jupiter Mines Ltd has completed the concept study into the expansion of the Tshipi Borwa manganese mine in South Africa.
Red Rock holds a 0.9% stake in Jupiter Mines, which has a 50% interest in Tshipi.
Looking ahead, Jupiter Mines intends to begin a feasibility study "shortly", which will be based on a production profile of 4.5 million tonnes.
Total capital expenditure required for the expansion is estimated to be ZAR1.03 billion, about GBP54.7 million.
Subject to the completion of the feasibility study and commercial process, Tshipi would expect to reach steady state exports of 4.5 million tonne in three years, Jupiter Mines noted.
"Jupiter has over the last 18 months exceeded its benchmark 70% dividend payout ratio, and the significant strengthening in the manganese price over the last two months testifies to the resilience of underlying demand," said Chair Andrew Bell.
He added: "The company expects a continued growth over time in the level of contributions received from its holding in Jupiter."
Red Rock shares were trading 18% higher in London on Tuesday morning at 0.50 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Red Rock Resources (RRR)