Premier commences production

HARARE - London-listed resources firm Premier African Minerals (Premier) said it will start production at its RHA tungsten project in Zimbabwe on Monday next week.

The company’s chief executive, George Roach, yesterday said screens and plant modifications are now at site and installation is progressing despite prior delays at the Zimbabwe/South Africa border, the company told investors.

“All plant upgrades and modifications are at site and installation is progressing well. I will update the market as we move back into production,” he said.

This comes after the tungsten miner recently completed the underground shaft at its RHA mine, while its plant contractor has committed to complete remedial work by early next month.

Delays to RHA’s plant coming on line meant the Zimbabwe-focused group posted a loss of $7,86 million in 2015 from a profit of $537 000 in 2014 after impairment charges of $844 000 on other exploration and evaluation assets in the country.

RHA has now commissioned the new shaft and expects to build tonnage from underground mining to 9 000 tonnes per month from June.

Negotiations with the process plant supplier have resulted in a commitment to make necessary modifications and other fixes.

Premier noted that one boost for the group is that tungsten prices have risen sharply recently, which will “contribute significantly” to future profitability when the plant at RHA is fully up and running.

At the end of December 2015, the Africa focused-miner was owed $13,7 million by its 49 percent-owned RHA located in the North Western part of Zimbabwe.

Premier added that its stake in potash group Circum shares had a fair value of $4 million at end December, but this was likely to have increased further after the recent completion of an optimised definitive feasibility study.

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.