18 Aug 2016 08:00
Lonmin Secures $50 million Funding For Tailings Project
Lonmin Plc ("Lonmin" or "the Company"), is pleased to announce that it has secured competitive funding of $50 million for the Bulk Tailings Treatment project ("the BTT project" or "the project") through a specific project finance metal streaming arrangement. The first tranche of project funding of $9 million has now been received and work has already started on the project.
The BTT project involves the re-mining of Lonmin's Easterns Tailings Dam. The project entails the reprocessing of 26 million tonnes of Tailings material at a rate of 300,000 tonnes per month. Commissioning and ramp up to full production is expected during the 2018 Financial Year.
Once at steady-state, the project is expected to produce about 29,000 ounces of Platinum per year or some 55,000 ounces of PGM, at a yield of 0.5 grammes per tonne (5PGE+Au) (grade of 1.42 grammes per tonne at a recovery of 35%). The project is part of Lonmin's business plan and is expected to produce the lowest cost ounces in the Lonmin portfolio.
"The BTT project is part of our strategy to focus on low cost ounces to maximise our cash position and create value for all our stakeholders," said Lonmin's Chief Executive Ben Magara.
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Lonmin
Tanya Chikanza (Head of Investor Relations) +27 11 218 8358 /+44 207 201 6007
Andrew Mari (Investor Relations Manager) +27 11 218 8420
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Notes to editors
Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.
Lonmin's operations are situated in the Bushveld Igneous Complex in South Africa, where more than 70% of known global PGM resources are located.
The Company creates value through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. Underpinning the operations is the Shared Services function which provides high quality levels of support and infrastructure across the operations.
For further information please visit our website: http://www.lonmin.com