Tati Nickel MD says mine can go to 2022
Ryder Gabathuse | Tuesday May 13, 2014 12:46
In an internal memo released yesterday, Russia national, Sergey Steshenko made a passionate plea to the miners to work very hard during trying times to keep the Tati mine afloat beyond its estimated end of the mine’s life in 2015.
He envisaged that once prudent operational measures are put in place, the mine earmarked for possible closure end of 2015 could get a new lease on life. “The production and financial position of TNMC remains precarious and requires all employees to work for a common purpose being ensuring its survival and being attractive to possible investors to enable TNMC life of mine extension for another seven years beyond 2015,” reads Steshenko’s memo.
He reminded the miners of an ABC strategy implemented last year to extend the life of the mine to December 2015 as opposed to going on care and maintenance effective June last year was achieved. He, however, acknowledged that TNMC, located 35 km east of the city of Francistown, has made a loss in 2013. Norilsk Nickel acquired 85 percent shares at Tati mine in 2007 from the Australian-based LionOre Mining International. Botswana government owns the remaining 15 percent shares.
The ABC strategy was introduced at the Tati open pit operation last year May to mitigate the declining ore grade, high costs of production and lower sales due to BCL mine smelter outages and declining nickel prices.
So, the ABC strategy came in handy to increase production, savings or cash preservation, negotiate new improved commercial terms of concentrate sales and treatment.
Last month foreign media reported that sales were stable at the Tati mine. “In each of the financial years 2012 and 2013, Tati’s nickel sales came to 7,000 tonnes and its copper sales were 5,000 tones,” wrote Reuters News Agency recently.
The Tati’s Phoenix mine started operation in 1995 whilst the Selkirk asset is located only 15 km from the Phoenix operation. The underground operation at Selkirk commenced in 1989 before it was placed under care and maintenance in 2002 due to the depletion of the resource-copper and nickel ores.
Botswana Mine Workers Union (BMWU) general secretary, Bob Malele said although he did not have the memo with him, he has received a briefing from the Tati mine branch about a possible investor taking over the Tati operation and life of mine extension.
Malele promised that the union leadership would look for the relevant information from the mine management and study it and engage the management where possible.
“The possible takeover of the mine and the extension of the life of the mine will be good for the workers, the government of Botswana and the economy of the city of Francistown amongst others,” he concluded.