Kombat mine resurfaces after years under water

WEATHERLY International PLC says it has started production at the Kombat underground mine as scheduled.

The AIM-listed integrated base metals producer, which took over the mine from Ongopolo, said it was now well on track to achieving its 2008 target of 20 000 tonnes of copper. “With five mines now operational we have largely completed the task we set ourselves some 15 months ago,” Weatherly International CEO Rod Webster said yesterday.The company plans to produce about 300 000 tonnes of ore in 2008 from the Asis West ore body, which would add another 5 000 tonnes of copper to the group.The Kombat mine was previously in production under Ongopolo until it was flooded in the fourth quarter of 2005.Weatherly started the dewatering campaign in the third quarter of 2006 and made considerable progress in rehabilitating the mine and bringing it back to production.Yesterday the company said sufficient reserves had now been established on the upper dewatered levels for production to proceed while at the same time the lower levels continue to be dewatered.”The higher grade resources, estimated by RSG (2006) as 340 000 tonnes at 3,4 per cent copper, remain below the water table but are expected to be in production by the second quarter of 2008, when the dewatering will be complete,” the company said.The underground operation at Asis West forms part of the larger Kombat mining complex, which has an overall milling capacity of around 400 000 tonnes per year.Weatherly bought the company for around N$400 million.It had to pay US$9 million in cash to a number of lenders as part of the takeover deal with Ongopolo and issued 47 million shares to the same lenders to convert all the outstanding debt into shares.It also invested N$235 million in rehabilitating the three mines that now make Weatherly Mining Namibia, as well as the Tsumeb smelter, with over 120 new jobs created and 114 new people recruited.The company paid the Government N$35 million in back taxes.According to Weatherly, there was an opportunity to resume production at the Berg Aukas Mine, closed in 1978, which historically produced lead, zinc and vanadium.The resource at the time of its closure was identified at 1,7 million tons grading 17 per cent zinc, five per cent lead and 0,6 per cent vanadium.The company is also developing the Tschudi open-pit mine with subsequent underground operations below the open-pit workings envisaged.”With five mines now operational we have largely completed the task we set ourselves some 15 months ago,” Weatherly International CEO Rod Webster said yesterday.The company plans to produce about 300 000 tonnes of ore in 2008 from the Asis West ore body, which would add another 5 000 tonnes of copper to the group.The Kombat mine was previously in production under Ongopolo until it was flooded in the fourth quarter of 2005.Weatherly started the dewatering campaign in the third quarter of 2006 and made considerable progress in rehabilitating the mine and bringing it back to production.Yesterday the company said sufficient reserves had now been established on the upper dewatered levels for production to proceed while at the same time the lower levels continue to be dewatered.”The higher grade resources, estimated by RSG (2006) as 340 000 tonnes at 3,4 per cent copper, remain below the water table but are expected to be in production by the second quarter of 2008, when the dewatering will be complete,” the company said.The underground operation at Asis West forms part of the larger Kombat mining complex, which has an overall milling capacity of around 400 000 tonnes per year.Weatherly bought the company for around N$400 million.It had to pay US$9 million in cash to a number of lenders as part of the takeover deal with Ongopolo and issued 47 million shares to the same lenders to convert all the outstanding debt into shares.It also invested N$235 million in rehabilitating the three mines that now make Weatherly Mining Namibia, as well as the Tsumeb smelter, with over 120 new jobs created and 114 new people recruited.The company paid the Government N$35 million in back taxes.According to Weatherly, there was an opportunity to resume production at the Berg Aukas Mine, closed in 1978, which historically produced lead, zinc and vanadium.The resource at the time of its closure was identified at 1,7 million tons grading 17 per cent zinc, five per cent lead and 0,6 per cent vanadium.The company is also developing the Tschudi open-pit mine with subsequent underground operations below the open-pit workings envisaged.