Sierra Rutile Limited Successful Gangama Dry Mine Commissioning (9141Z)
June 02 2016 - 1:00AM
UK Regulatory
TIDMSRX
RNS Number : 9141Z
Sierra Rutile Limited
02 June 2016
Sierra Rutile Limited
Successful Gangama Dry Mine Commissioning
London, UK, 2 June 2016: Sierra Rutile Limited (AIM:SRX)
("Sierra Rutile" or the "Company") is pleased to announce that
plant commissioning of the Gangama Dry Mine project and handover
from DRA Projects (Pty) ("DRA Projects") to Sierra Rutile was
successfully completed on 31 May 2016. The Gangama Dry Mine is now
operational and producing high quality natural rutile, a high grade
titanium feedstock.
Construction of Gangama Dry Mine commenced in April 2015 and,
over a thirteen-month period, Sierra Rutile worked alongside DRA
Projects to ensure that the project was completed on time and
within budget. Plant commissioning is deemed to be attained once
the dry mining plant has operated and processed ore for seven
consecutive days, achieving specific design criteria which includes
name plate capacity of 500 tonnes per hour ("tph"). This test
period ran from 22 May to 29 May 2016, during which both Sierra
Rutile and DRA Projects were pleased to note that feed rates and
plant utilisation exceeded the design criteria. Specifically, over
the seven-day period, the Gangama Dry Mine plant operated at an
average throughput of 555tph and 87% availability. Steady-state
operation is expected to be achieved within four months.
Next Steps
Building upon the experience gained in successfully designing,
constructing and operating Lanti Dry Mine and Gangama Dry Mine,
Sierra Rutile remains fully engaged in process optimisation, value
engineering and market evaluation of its two further near-term
expansion projects, the 250tph bolt-on units, one for each of Lanti
and Gangama Dry Mining. Additionally, Sierra Rutile also continues
to progress towards a definitive feasibility study for the Sembehun
Dry Mine.
In addition to its existing operations, these projects will
enable Sierra Rutile to continue to implement its strategy of
increasing production through expansion of its dry mining
operations, aligning production with anticipated customer demand in
a capital efficient manner. The near-term expansion projects will
further improve Sierra Rutile's ability to quickly respond to a
market upturn.
John Sisay, CEO of Sierra Rutile, said: "The successful
completion of the Gangama commissioning and plant handover process
confirms that the Gangama Dry Mine plant has achieved its nameplate
capacity of 500tph during plant commissioning. I am pleased to note
that during the process guarantee period, the plant proved the
ability to outperform its nameplate capacity. We would like to
thank DRA Projects for collaborating and working with Sierra Rutile
to successfully bring the Gangama Dry Mine into production on time
and within budget, further demonstrating Sierra Rutile's continued
track record of delivering on its stated goals."
DRA Managing Director, Johann de Bruin, comments: "DRA is very
pleased with the successful delivery of the Gangama Dry Mine
Project in Sierra Leone. I would like to commend the DRA Project
team, our construction partners and Sierra Rutile on completing the
project with zero lost time injuries. The project has been a major
success for DRA and is testament to our continued growth in mineral
sands as well as our expanding capabilities throughout the African
continent. A key strength of our organisation is our ability to
deliver in Africa and we look forward to continuing the partnership
with Sierra Rutile."
ENDS
For further information
Sierra Rutile Limited
John Sisay, Chief Executive
Officer
Matthew Hird, Chief Financial +44 (0)20
Officer 7074 1800
Investec Bank
Nominated Adviser and
Joint Corporate Broker
Chris Sim / George Price +44 (0)20
/ Jeremy Ellis 7597 4000
Numis Securities Limited
Joint Corporate Broker
John Prior / James Black +44 (0)20
/ Paul Gillam 7260 1000
RBC Capital Markets
Joint Corporate Broker +44 (0)20
Jonny Hardy / Elliot Thomas 7653 4000
Kreab
Marc Cohen / Christina +44 (0)20
Clark 7074 1800
About Sierra Rutile Limited
Sierra Rutile is a leading, multi-mine mineral sands company,
operating world-class assets and developing a portfolio of growth
projects in the south west of Sierra Leone, with its primary
commodity mined being natural rutile, a titanium feedstock. The
Company has an established operating history spanning approximately
50 years and a resource mine life of another 50 years with one of
largest natural rutile deposits in the world and a JORC-Compliant
Mineral Resource for measured, indicated and inferred resources for
the Sierra Rutile mine of over 866 million tonnes (as at 30
September 2015). Sierra Rutile expects to be the world's largest
primary producer of natural rutile in 2016 and its market-led,
long-term mine plan has the flexibility to adapt to customer
demand.
www.sierra-rutile.com
This information is provided by RNS
The company news service from the London Stock Exchange
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