Alphamin to proceed with Mpama South mine development
Tin miner Alphamin Resources on March 29 said it had taken the decision to proceed with the development of the Mpama South mine and processing plant in the Democratic Republic of Congo.
Alphamin is targeting first tin production at Mpama South by December 2023.
The mine is estimated to produce contained tin of 7 232 t/y at an estimated all-in sustaining cost of $15 188 /t.
The mine is expected to deliver earnings before interest, taxes, depreciation and amortisation of about $187-million a year at an assumed tin price of $40 000/t.
Alphamin estimates the capital development cost for Mpama South at $116-million. The project will be funded from cash reserves.
“The development of Mpama South as a brownfield expansion is expected to increase Alphamin’s annual tin production by 65% to a targeted 20 000 t from full-year 2024.
“Tin and technology are interlinked and, consequently, global demand for tin continues to increase despite constrained supply.
“This development decision and the resultant additional production expected by the end of 2023, position us to deliver more tin into this widening market deficit,” comments CEO Maritz Smith.
Meanwhile, following assay results from 22 additional drill holes, the Mpama South inferred resource has increased by 75% to 3.42-million tonnes.
Alphamin highlights considerable additional resource growth potential at Mpama South.
Drilling is ongoing with considerable mineralisation intercepted beyond the updated mineral resource boundary.
