Copper mined in Northern Cape after 40 year hiatus – Miningmx

COPPER 360 said on Monday it had started underground mining from Rietberg, a copper mine in the Northern Cape – a development that represents first primary production from the Okiep Copper district in more than 40 years.

“The commencement of mining activity at Rietberg is an exciting moment for us and the culmination of several years of planning; but inasmuch as it marks a milestone for Copper 360, it also signals the beginnings of a new era for the Northern Cape,” said Jan Nelson CEO of Copper 360 in an annoucement.

Despite the good news shares in Copper 360 lost nearly 9% in the first two hours of trade in Johannesburg.

For Copper 360 underground mining means production of copper concentrate in addition to the plate product it is selling from re-mining of surface material. An estimated 80% of the firm’s projected future earnings will come be primary mining.

In June, Copper 360 reported a R129m operating loss for 2023 compared to the R244.8m profit it forecast in its pre-listing statement. Nelson brushed off the performance saying the loss was disappointing but not uncommon for a mining company that was building up its processing capacity.

Copper 360 is targeting production of 45,000 tons a month after four months of mining once it has added a second processing plant, currently under construction. Output will start today at a planned 12,000 tons monthly.

Plant recoveries of 75 to 85% are being targeted during start-up with previous test work reporting recoveries of 92% are possible, the company said.

The reopening of Rietberg, which was previously operated by the US gold producing giant, Newmont as well as South Africa’s Gold Fields until the mine was closed in 1983, raises the curtain on mining of the important red metal on the O’Kiep Copper District. Orion Minerals, another copper start-up, is also planning to produce copper from the region.

Copper 360 said it planned to continue re-opening the area as part of its ‘Cluster Mining Model’. The company holds a mining right across 19,000 hectares where 12 mines and 60 historical prospects have been identified.