Tharisa buys mining equipment to further owner-mining strategy

JOHANNESBURG (miningweekly.com) – Dual-listed Tharisa Minerals, led by CEO Phoevos Pouroulis, has entered into a binding term sheet with MCC Contracts to buy certain of MCC’s equipment, strategic components, site infrastructure and spare parts at the Tharisa platinum group metals and chrome mine in the Bushveld Complex.

This forms part of the miner’s intention to transition from a contract-mining to an owner-mining model and would also allow for the transfer of around 900 employees currently deployed at the mine.

MCC currently provides opencast contract mining services, including drilling, blasting, load hauling and rehabilitation services at the mine.

Tharisa believes with the long life of the mine’s openpit, estimated at 18 years, it would be beneficial to transition from a contract mining to an owner-mining model.

The mine has further potential to extend its life by 40 years though an underground mine extension.

“By taking direct control of our mining operations, we will be better placed to control the reef grades, thereby delivering improved quality ore to the processing plants and optimising the feed and recovery within the plants,” the miner said in a statement.

Tharisa will buy the assets and equipment from MCC for R303.3-million, which includes 153 ‘yellow fleet’ machines such as excavators, off-highway dump trucks, articulated dump trucks and support vehicles.

The transaction will also include 17 additional machines from another MCC site.

In addition, Tharisa will accept assignment in respect of leased equipment comprising drill rigs, excavators and off-highway dump trucks and will continue to lease these 14 machines.

The settlement amount for the leased equipment stood at R100.2-million.