Sumatra Copper: Tembang plant set for commissioning in Q4

By Romel S. Gurky

ASX-listed Sumatra Copper & Gold plc said on Monday that a 400,000-to per annum processing plant at its 100 percent-owned Tembang gold and silver project in southern Sumatra is on track to start commissioning in the fourth quarter of this year.

?We are pleased with the significant progress achieved to date. We are on track to start commissioning the 400,000 tons per annum process plant during the fourth quarter of 2015. Initiation of mining activities to support this plan is scheduled to commence in the dry season which provides increased confidence in the overall production schedule,? said Acting CEO David Fowler in a statement.

The company provided the following update on the processing plant, infrastructure facilities, and mining operation at the project.

Process plant
- Concrete, steel and mechanical design complete;
- Orders for the MCC?s and variable speed drives have been placed and are being manufactured;
- All major mechanical equipment has been ordered;
- SAG mill, CIL agitators, slurry and reagent pumps, inter-stage screens, gravity circuit equipment and oxygen plant are all due to be delivered to Tembang during March 2015;
- Steel fabrication is advanced with steelwork for crushing, CIL platform, gravity circuit, and cyclone tower complete and delivered to site; steelwork is currently being delivered for the elution circuit;
- Contractor for concrete and steel (supply and erect) established on site;
- Concrete and steel site works 30% complete (in addition to the CIL, crushing, laboratory, reagents and power station foundations that are already existing);
- Mechanical installation contract placed (with steelworks contractor) with installation scheduled to commence 2nd March 2015;
- Electrical contract awarded, with contractor site establishment scheduled for 15 th May 2015;
- Piping supply and install contract yet to be awarded.

Infrastructure
- Kitchen and mess completed February 2015;
- Explosives magazine buildings completed in January 2015, installation of guard tower, lightning protection and hydrants, required for Indonesian permitting due to be complete early March 2015;
- Tender for hire of power station equipment completed and contract expected to be signed in quarter 1 2015 with mobilisation and construction of the power generation facility in quarter 3 2015;
- Submissions made for B3 hazardous waste permit required for tailings deposition; construction of tailings dam expected to commence in quarter 2 2015

Mining
- Orders placed for underground mining equipment with expected delivery during quarter 2 2015; Belinau decline development scheduled to commence quarter 2 2015;
- Tender for open pit mining contractor completed with selected contractor to mobilise and commence mining during quarter 2 2015;
- Significant reduction in diesel fuel costs expected to have a positive effect on mine operating costs;
- Dewatering and lime dosing of the Belinau and Bujang pits commenced in accordance with schedule;
- Infill drilling of the Siamang, Bujang and Berenai deposits completed. Re-optimisation of open pits expected to be completed in April 2015;
- Infill drilling program has confirmed the mine plan and underpinned final mine design and grade control for the proposed mining schedule;
- Recruitment of expatriate and local mining teams advancing as expected. The Company has developed an on-site Pre-Employment Training Program (PETP) to provide basic training and skills development of the artis anal miners. The Company has received excellent support from local government via the provision of trainers and the use of government-operated training facilities for those artisanal miners wishing to achieve a trade certification. On completion of the PETP the successful candidates will be deployed into the open pit and underground mines, processing and environmental areas as the project ramps up to full production.

Editing by Reiner Simanjuntak