Pan African plans cheaper, easier Royal Sheba mine
The company shelves opencast gold mine in favour of a cheaper underground option, and it sees a return to dividend payments in 2020
27 May 2019 - 18:25
UPDATED 27 May 2019 - 20:08
Pan African Resources found its Royal Sheba gold deposits at Barberton to be financially difficult as an opencast mine but there was a cheaper option of making it a smaller, highly mechanised mine, keeping production steady at 100,000oz a year.
The first option of building a new standalone mine, with its own processing plant, fleet of equipment and the diversion of a river, entailing a difficult environmental approval process, came in “quite a bit in excess” of the estimated cost of R400m, says Pan African CEO Cobus Loots...
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