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Members of the project team with the first copper produced at Sepon.

First copper at Sepon two weeks ahead of schedule

The first copper cathodes were stripped at the Sepon copper plant in Laos in mid-March 2005, two weeks ahead of schedule. The ramp-up to full production is on target and is expected to meet the planned production for 2005 of 30 000 t of copper, increasing to 60 000 t/yr of LME grade A cathodes in 2006.

BATEMAN's success at Sepon has affirmed it as a world leader in process development, design and construction of copper hydrometallurgical processing plants. The copper process at Sepon is novel and was developed by BATEMAN and Oxiana during the definitive feasibility study which was completed in September 2002. It is a fully-integrated circuit which incorporates such state-of-the-art unit processes as milling in acid solution, 80°C atmospheric leaching, high-temperature autoclave leaching, flotation, solvent extraction and electrowinning.

The overall cost of the project was US$226M which included processing plant and infrastructure upgrades, and the contract was awarded in January 2003 by Lane Xang Minerals Limited (LXML), a Lao-based company now 100 % owned by Oxiana Resources NL. Execution of the project was done by Khanong Development Group which is a joint venture between BATEMAN and Ausenco Limited of Australia.

Over the two-year project life, the project team overcame significant challenges, which required considerable technological innovation and detailed planning. The logistical and transport hurdles were complicated by the remoteness of the site and involved some 1 430 loads of materials and equipment, from 336 purchase orders and 33 major contracts, being transported to site. This required a 967 km supply route from Laem Chebang in Thailand with the last 42 km by dirt road. At peak activity, some 2 193 people were employed on site for the construction, 36 of whom were the joint-venture construction team and 600 of whom were local workers drawn from surrounding villages.

Construction of the plant met first-world environmental standards in line with the commitment by Oxiana and the joint venture to the long term welfare of the Lao people. In addition, throughout the project an excellent safety record was maintained with an LTIFR (lost-time injury frequency rate) of 0,6 per million manhours for the 6,7M manhours worked up to the end of February 2005.

The Sepon copper operation will process 1,3M t/yr of chalcocite-clay run-of-mine (ROM) ore from an open-pit mine based on the Khanong orebody. The orebody has a current resource of 42M t containing 3 % copper and a mineable reserve of 15,5M t at 5,2 %.

Oxiana is an international mining and exploration company and is currently the third largest Australian-based gold-mining company on the Australian Stock Exchange. Besides Sepon and its operations in Australia, it is also involved in considerable exploration and generative projects in Laos, Philippines, Thailand and China.

For further information, please contact Jim Smith, General Manager, Base Metals on +61-7-3320-3333 or email basemetals@batemanengineering.com.