Tharisa PLC (LON:THS) says it expects to produce 150,000 ounces of PGM (platinum group concentrate) and 1.4Mt (million tonnes) of chrome concentrates in full year 2018, as it said its acquisition of MCC’s assets was now unconditional and effective from October 1.
As reported previously, Tharisa will buy from MCC certain existing mining equipment, spare parts, as well as transfer employees currently on site and deployed at the Tharisa mine in South Africa.
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By taking direct control of its mining operations, Tharisa said it will be better placed to control reef grades and deliver improved ore to the processing plants and optimise the feed and recovery.
As reported previously, the cost will be 303.3mln rand (US$22.3mln) for 153 'yellow fleet' machines that are substantially all of the equipment at the mine, as well as 17 additional machines from another MCC site.
In addition, planned near term fleet optimisation equipment purchases of US$8.3mln are now committed, including drill rigs, excavators and additional mining fleet.
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The estimated fleet replacement cost is around US$145mln.
Tharisa large scale open pit operation has an open pit life of 18 years and a further 40 years underground.
"With the long life of the open pit, the transition to an owner mining model is a logical progression in its development by derisking operations, it told investors.