African Minerals Limited announced results of phase 2 friable hematite concentrator engineering study. The first Phase of operations at Tonkolili has been the establishment of a sustainable production level of 20Mtpa from the direct shipping ore (DSO) portion of the ore body, recently re-estimated as having a remaining resource of 140Mt, and representing only 1% of the tot Tonkolili resource. The first part of Phase 2 is the expansion of DSO processing and infrastructure operations to capability of 25Mtpa, which is currently underway.

The next stage of Phase 2 is the establishment of concentrator facilities to treat the large underlying ore resource, which require processing to a concentrate. Over time, the concentrator capacity will increase to fully replace the depleting DSO resource. Following receipt of Engineering Studies from Ausenco, the company provides an updat regarding this Phase 2 strategy.

The first friable hematite concentrator will involve a low capital intensity conversion of the current large Wet Process Plant 1B, including raw water supply, tailings storage, infrastructure and ancillary services. Commissioning of the first units is expected to commence within 12 months of project start The estimated capital costs for this brownfield conversion and associated additional works have been reduced by over $1 billion, to $311 million (+/-25%), prior to final value engineering The concentrator will target production of c11 million tonnes per annum (Mtpa) of a +63% Fe concentrate product, with an average mass yield of 56%, from head feed sourced from the medium grade portion of the 1.1 billion tonne (Bt) friable hematite resource. The Tonkolili Mine will be able to produce 11Mtpa of high quality concentrate, and over 14Mtpa of DSO product concurrently, maintaining a +25Mtpa production profile with all-year-round shippable products.