01 Feb Alphamin Resources’ Bisie mine well on track
TSXV-listed Alphamin Resources is on track on track to deliver on it production timeline according to the mapped schedule at its tin mine in North Kivu in the DRC.Alphamin Resources is confident that first production will commence in 2019 and be in a steady state towards the end of 2019.
“Alphamin is all about unlocking one of the richest tin deposits in the world and then as a consequence the entire North Kivu region of the DRC,” says CEO, Boris Kamstra.
“This is a very rare opportunity where you have both an extraordinary financial return in a particular project and a whole host of developmental returns in the surrounding region and in the country in particular.”
“Once Alphamin starts generating cash it will retain some money to further its exploration activities. Ultimately, it is believed that this region can produce tin for well over 30 years.
“Alphamin will be written in the annals of mining and development through bringing Bisie into production, catalysing North Kivu’s economy and bringing increased prosperity and governance to the people of North Kivu, whilst providing its shareholders with exceptional returns,” adds Kamstra.
[quote]Alphamin holds a current Exploitation Permit in North Kivu in the DRC.
The project presents an attractive opportunity to develop one of the highest grade known tin deposits in the world and to promote economic growth and stability in North Kivu.
Alphamin believes that the development of the project would be a catalyst for regional economic growth.
Alphamin is committed to contributing to the stability and economic activity in North Kivu, bringing significant benefit to the community and other stakeholders alike.
“The Alphamin Bisie Mining project presents an attractive investment opportunity and is developing a lucrative tin mine on one of the highest grade known tin deposits in the world, while promoting economic growth and stability in North Kivu in the DRC,” says Kamstra.
The first production at the mine is expected early in 2019 and the mine is expected to reach steady state production towards the end of 2019.
Alphamin will produce on average 9 642 tpa tin at a cash cost of US$8 837 per ton tin produced and $10 359 per ton tin sold after duties, royalties, levies and marketing fees, generating an average EBITDA of ~$110 million per annum.
The project has a payback period of less than two years. Alphamin estimates it will be in the lowest cost quartile of all tin producers.
Alphamin’s tin mine at Mpama North is Alphamin’s first step in the creation of a tin province. The financial metrics and budgeted costs are exclusively for the development of Mpama North.
“The return metrics for future tin projects are likely to be enhanced by the fact that the capital costs will be significantly lower as a result of the infrastructure and processing capacity that will have been developed for Mpama North,” explains Kamstra.
“Alphamin also has the potential to extend its operational lifespan well beyond the current 12.5-year plan – in addition to Mpama South, an off-shoot from Mpama North, it has numerous exploration licenses in the region, including an area further to the south known as Marouge where Alphamin has already picked up tin anomalies,” he states.
Alphamin will be a lowest ten percentile producer of tin in concentrate in the world.
“We are starting with a portion of the ore-body that we know. We believe that the entire area is going to be a tin province and we believe that in the very near future North Kivu, the Walikale area in particular, will be one of the premier tin producing areas in the world.
“It is the best tin mine to be developed in the world and if one looks at the grades and comparative grades to other minerals about 17 grams per tonne gold equivalent type deposit or a 16% copper equivalent. Mines of that nature and grade strength, have not been seen probably in the last century,” says Kamstra.
Alphamin’s cost of production is about $7 400 before taxes and royalties, approximately $8 316 post that. In the current environment, which is $17 000 to $18 000 per ton tin, this is an extremely profitable project. Should the price move materially up, the profitability improves and locks step with that.
“Alphamin is an economic anchor for the development of North Kivu’s economy. The Alphamin Bisie Mining (ABM) project is the manifestation of what conflict mineral legislation aimed to achieve,” says Alphamin Bisie Mining MD, Richard Robinson.
“Delivering on the commitment to develop the first large, commercial tin mine in that part of the country – giving Alphamin credibility, locally and abroad, while becoming a business transformation reference in the tin mining industry.”
He explains that the ABM project has been a catalyst for regional economic growth and holds more positive promise for years to come, and Alphamin is committed to contributing to the stability and economic activity in North Kivu.
Alphamin has committed, from the date of production, to spend 4% of its in-country operating and administrative expenses on community development.
“This investment will be governed with representative input from local communities and managed by the Lowa Alliance, a GDRC-regulated, not-for-profit foundation.
“Alphamin is implementing community projects, supported by the alliance, being selected following an in-depth survey of the 13 500 households across the 44 communities closest to Bisie.
“Alphamin will continue to preserve its legal rights to develop the ABM project and explore ways to assist artisanal miners to transition from illegal to legal status, conflict-free sites elsewhere in the region,” says Robinson.
Robinson says that Alphamin enjoys a very positive and constructive working relationship with the provincial government of North Kivu, as well as that of the Democratic Republic of Congo.
The North Kivu Minister of Mines, Electricity, Small & Medium Enterprises, Industry and Hydrocarbons, Minister Professor Anselme Paluku Kitakya, recently at a joint media briefing with Alphamin recognized the major challenges facing the region, including insecurity, inadequate legal and regulatory frameworks, land locked enclaves, inadequate infrastructure, fraud and contraband and declining exchange rates that have an impact on mining in the region.
However, the minister stressed that a lot is being done to overcome these challenges by working with industrial mining companies, like Alphamin.
A special Government committee has been formed to support the development of the Alphamin Tin Mine at Bisie, the CAIMB, which includes 27 DRC Government divisions and ministries.
Alphamin is a member of the Conflict-Free Sourcing Initiative, a global end-user grouping of companies that develop conflict-free certification standards and protocols, and is also a member of the International Tin Research Institute, which is involved in global conflict-free sourcing initiatives.
Kamstra concludes that tin is a great commodity, this is an extraordinary deposit in an area that has incredible potential for which Alphamin will be the catalyst to unlock and whoever is in with Bisie will get the benefit of that momentum.
Publication: Mining Review
Feature image credit: Wikipedia