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18 E&MJ; • MARCH 2014 www.e-mj.com REGIONAL NEWS - AFRICA Ambatovy Nickel-Cobalt Project Goes Commercial Sherritt International reported on January 22, that the Ambatovy laterite nickel- cobalt project in Madagascar had reached commercial production. The project is a vertically integrated mining, processing, refining, and marketing joint venture between subsidiaries of Sherritt (40% ownership), Sumitomo (27.5%), Korea Resources (27.5%), and SNC-Lavalin (5%). Sherritt is the operator. Sherritt defined commercial production at Ambatovy as ore throughput averaging 70% of nameplate capacity in the pressure acid leach circuit over a 30-day period, at which point all revenue and operating costs ceased to be capitalized. The Ambatovy project is the world's largest producer of finished nickel and cobalt products from lateritic ore. Sherritt is currently focusing on optimizing project performance and bringing it up to its name- plate capacity of 60,000 mt/y of finished nickel and 5,600 mt/y of finished cobalt. The Ambatovy mine is located 80 km east of Antananarivo, the capital of Mada- gascar, within a few kilometers of the main road and rail system that connects Antan- anarivo and the main port city of Toamasina on the East Coast. The mine is based on two large, weathered lateritic nickel deposits located approximately 3 km apart. Com- bined, the deposits constitute one of the world's largest lateritic nickel reserves, cov- ering an area of about 1,800 ha, with depths ranging between 20 m and 100 m. Ambatovy mine life is currently projected at 29 years. Due to the soft nature of the ore, no blasting is required. Ore is surface-mined by hydraulic excavators and delivered to an ore preparation plant by articulated haul trucks. The ore preparation plant is located at the mine site and separates the soft lat- eritic soil from rock and waste material. The laterite is then combined with water to produce slurried ore, which is fed into a 220-km pipeline that links the mine to a hydrometallurgical processing plant and refinery directly south of Toamasina on the coast. This plant produces 99.8%-pure, LME-deliverable nickel briquettes that are packaged for shipment in 250-kg drums and 2,000-kg bags. Cobalt is produced as 99.8%-pure powder and LME-deliverable bri- quettes that are packaged in 250-kg drums. Ammonium sulphate fertilizer is pro- duced as a by-product of Ambatovy pro- cessing operations. This product is sold both to the Madagascar domestic market and to export markets. AngloGold Ashanti Selling Navachab Mine in Namibia AngloGold Ashanti reported on February 10, the signing of a binding agreement to sell its Navachab open-pit gold mine in Namibia to QKR Corp. for $110 million. QKR is a pri- vate equity company, and purchase of the Navachab mine is its first acquisition. The company's president, Lloyd Pengilly, is a former Johannesburg gold analyst. The processing plant at Sherritt International's Ambatovy laterite nickel-cobalt complex in Madagascar is designed to produce 99.8% pure, LME-deliverable nickel briquettes. Cobalt is produced as 99.8% pure powder and LME- deliverable briquettes. (Photo courtesy of Sherritt International) Strikes at the platinum mines of Anglo American Platinum, Impala Platinum, and Lonmin in South Africa, initiated by the Association of Mineworkers and Construction Union (AMCU) on January 23, remained in effect in the last week of February. AMCU had not given any ground in its demands for a doubling of minimum month- ly wages, while the companies had slightly improved their offer to an increase of 9%. In a joint statement, Anglo American Platinum, Impala Platinum and Lonmin said they would not further raise an already rejected wage offer and warned of impending job losses. On February 14, Anglo American Platinum filed a suit against AMCU charging that the union had failed to maintain control of the strike. The company was seeking R591 million (about $54 million) for property damage by the striking miners, as well as lost production. On February 21, Anglo American Platinum asked the Johannesburg Labour Court to hold AMCU in contempt, saying it ignored an order to stop using violence in the ongoing strike. A mine worker was attacked and set on fire on his way to an Anglo Platinum mine on February 20. Earlier in the month, an AMCU shop steward was shot dead in a clash between strikers and police. On February 24, seven South African platinum mining compa- nies established the website "Platinum Wage Negotiations 2014," to provide an ongoing source of information about the negotiations. The website can be accessed at platinumwagenegotiations.co.za. South Africa's Platinum Strikes Ongoing as of Late February (Continued on p. 26) EMJ_pg04-27_EMJ_pg04-27 3/3/14 10:32 AM Page 18