Sishen Expansion Project awarded to BATEMAN / Murray
& Roberts JV
Kumba Resources Limited has awarded a contract to a joint venture
between BATEMAN and Murray & Roberts to upgrade Sishen Iron Ore
mine's production by 10M t/yr.
The total value of the project known as the Sishen Expansion Project
is US$445M, of which US$50M is the engineering, procurement and construction
management (EPCM) contract awarded to the BATEMAN and Murray &
Roberts joint venture. The award was obtained due to the combined
strength of the joint venture's process-engineering expertise and
BATEMAN's extensive knowledge of jig processing. Pain and gain clauses
have been incorporated in the contract.
The Sishen Expansion Project will increase Sishen's production from
the current 28M t/yr to 38M t/yr by 2009. The design component of
the project is to be completed by November 2005 and construction will
start in mid 2005, with production ramp-up to commence by mid 2007.
The new plant will treat 16M t/yr of combined run-of-mine and stockpiled
material. The additional 16M t/yr feed will be processed through a
newly-built plant incorporating proven jigging technology to produce
about 10M t/yr of saleable ore with an average iron content of 64
%, compared with the 66 % iron content of the current Sishen product.
The primary crusher to be installed will be one of the biggest units
built in recent times.
The additional production will be exported via the 860 km Sishen-Saldanha
railway line and the port of Saldanha on the country's west coast.
The product will be for sale in both the local and international market.
The project will make a meaningful contribution to the Northern Cape
and South African economy with 1800 direct construction jobs and more
than 300 direct and 600 indirect long-term jobs being created through
the expanded operations. In addition, some US$250M per year will be
contributed to South Africa's foreign exchange receipts when full
production is achieved.
Sishen Iron Ore mine is operated by the Sishen Iron Ore Company Ltd
and is located in the Northern Cape Province. It is one of the largest
open-pit mines in the world and is well known for its high grade and
consistent product quality.
Kumba Resources Limited, one of the largest South African-based mining
companies listed on the JSE Securities Exchange, has a diverse commodity
portfolio consisting of iron ore, coal, heavy minerals, base metals
and industrial minerals.
For further information, please contact John Hope, General Manager,
Industrial Minerals on +27-11-899-2358 or email industrialminerals@batemanengineering.com.
