Name and Location
Kolomela iron-ore project, Northern Cape, South Africa.

Client
Kumba Iron Ore.

Project Description
The project involved the development of an iron-ore mine, about 80 km south of the Sishen mine, near Postmasburg.

Kolomela is a conventional openpit mine. The plant is a full dry-crush and screen operation only.

The mine has a 29-year life-of-mine and produces direct shipping ore, amounting to nine-million tons a year.

Ore is transported on the main Sishen–Saldanha iron-ore export channel to the Port of Saldanha Bay by means of a 36 km rail link built from the mine.

Main offices and general infrastructure have been established at the mine site, which ARE accessed through a new surface road running south from the Beeshoek mine to the site office area.

A 132 kV overhead line from the Eskom Postmasburg substation supplies the mine with power.

The mine will also include 718 houses in the Tsantsabane local municipal area to house the permanent employees, of which 619 houses have already been completed

The delivery of the Kolomela project is in line with Kumba’s growth strategy of ramping up the South African production to 70-million tons a year by 2019.

Value
R8.5-billion.

Duration
Kolomela started commercial production at the end of 2011, five months ahead of schedule. The mine was officially opened on June 22, 2012.

Latest Developments
Excellent progress was made at Kolomela mine in 2012. The mine, which was brought into production five months ahead of schedule in December 2011, significantly exceeded the production ramp-up schedule and delivered production of 8.5-million tons for the year.

The Kolomela mine’s ramp-up is on track to produce at full design capacity of nine-million tons in 2013, which will enhance the group’s ability to supply iron-ore to the market during the year.

Waste mining at Kolomela mine is expected to increase as the new pits are opened up, which will put upward pressure on unit cash costs.

Key Contracts and Suppliers
Bearings International (bearings and transmission equipment); Metso Minerals (crushers); Takraf South Africa (stackers and reclaimer); Concor Roads & Earthworks (earthworks); Grinaker-LTA Civil Engineering (civils); Group Five (buildings); Hatch Africa, BVi Consulting Engineers Gauteng, Jeffares & Green, Ninham Shand (engineering, procurement and construction management, and consultants); Komatsu (equipment); Caterpillar (equipment); TTC (structural, mechanical, platework and piping); LSL Consulting (load-out station design); MikroPul (dust control contracts); Senet (conveyors); Condra Crane (cranes); Speedspace (prefabricated structures); Professional Cost Consultants (PCC) in consortium with Mandla Mlangeni Quantity Surveyors or MMQS, (quantity surveying services) and JDS Industries (equipment manufacturer).

On Budget and on Time?
Kolomela was commissioned ahead of schedule and still within budget. On a cumulative basis, Kumba spent only R7.4-billion of its approved R8.5-billion capex.

Contact Details for Project Information
Kumba head of projects Francois Louw, tel +27 12 683 7057 or email francois.angloamerican.com.
MikroPul, tel +27 11 478 0456 or fax +27 11 478 0371.
MMQS, tel +27 11 486 0080, fax +27 11 486 0081 or email mmqsjhb@mmqs.co.za.
LSL Consulting, tel +27 11 789 8138.
PCC, tel +27 11 486 4872, fax +27 11 646 0602 or email christo@pcc.co.za.
JDS Industries, tel +27 18 469 9900/01/02, fax +27 86 6 471 227/+27 86 6 657 301 or email jan@jds-karock.co.za.