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REGIONAL NEWS - AFRICA Endeavour Targeting Q1 2014 Start at Agbaou Gold A SAG mill shell is one of the major mill components already on site as Endeavour Mining advances its Agbaou gold project for a proposed 2014 startup. (Photo courtesy Endeavour Mining) Endeavour Mining reports that construction of its Agbaou gold mine in Côte d'Ivoire is on budget and on schedule for production to begin during the first quarter of 2014. Gold production is expected to average 103,000 oz/y over an eightyear mine life. The open-pit mine and gold plant are designed to mine and treat 1.6 million mt/y of saprolite ore or 1.34 million mt/y of bedrock ore. The plant design incorporates a conventional gravity and CIL circuit for a gold recovery rate of 92.5%. Steel deliveries for the Agbaou plant have begun and will continue over the next several months. Major concrete pours are complete, and CIL tank construction is in progress. As of mid-March 2013, approximately 62% of the $159 million construction budget had been committed, with $45 million spent. The project was 52% physically complete overall. All major contracts, including an EPCM contract with Lycopodium and a mining contract with BCM International have been finalized and are within the cost estimates of the project's June 2012 feasibility study. Major component deliveries for the SAG and ball mills were on schedule. Camp construction was nearly complete, with approximately 900 workers on site. 28 E&MJ; • APRIL 2013 Preparations for connection of Agbaou operations to the Côte d'Ivoire power grid were well advanced, with transformer delivery expected in July 2013. Construction of the high voltage sub-station began on March 1. Endeavour has begun recruiting key operations personnel. Gerald Boting was recently appointed general manager of Agbaou. He was instrumental in the development of the Skorpion Zinc project in Namibia and served as the general manager of that mine for seven years. Endeavour reports that community support for Agbaou is solid, with crop compensation 100% complete, relocation construction for 250 residents nearing completion, and several major community development projects completed. The Agbaou project is located about 200 km northwest of the port city of Abidjan, Côte d'Ivoire. Endeavour has an 85% interest in the mining company established to develop the project, and the government of Côte d'Ivoire holds the remaining 15%. Rusal Suspends Production at Nigerian Smelter Russian aluminum producer UC Rusal announced on March 15, a decision to temporarily suspend aluminum smelting operations at the Alscon aluminum smelter in Nigeria. The plant is owned 85% by Rusal and 15% by the Nigerian government. Rusal is dealing with both a legal challenge to the legitimacy of its ownership interest in Alscon and an unreliable gas supply to the smelter, which has limited production. The smelter produced about 22,000 mt of aluminum in 2012, well below its rated capacity of 96,000 mt/y. Rusal said the suspension of operations at Alscon was a temporary measure and was necessary to avoid shutting down the plant completely. "Smelting operations will resume as soon as the legal uncertainty has been resolved and the continuous power supply has been secured," the company said. Also, "The on-going situation around the illegal attempts to challenge Rusal's rights of ownership to the plant and the recent decision of the Supreme Court of Nigeria to cancel the sale of Alscon shares to Rusal impede long-term investment in the smelter. In particular, legal issues relating to ownership render it impossible to sign long-term contracts; hinder development; obstruct implementation of structural, production and material improvements; and impede performance of obligations." Rusal is the world's largest aluminum producer. In 2012, the company produced 4.2 million mt of primary aluminum from 15 smelters. Of these, 13 are located in Russia. Apart from Alscon, Rusal's other foreign smelter is the Kubol smelter in Sweden. On March 4, Rusal announced that, in response to low aluminum prices, it is reducing its company-wide primary aluminum production by 300,000 mt during 2013. The decision was taken "to maintain the company's competitive position in the global aluminum market given the current overcapacity, high power tariffs, and metal prices downturn." In particular, the soft global aluminum market exacerbated Alscon's losses and was a factor in the decision to suspend operations, Rusal said. Despite the continuing uncertainty around the plant, Alscon will continue to www.e-mj.com