Sable is located near the town of Kabwe in the central province of Zambia, approximately 150 kilometres north of Lusaka – the country’s capital. The operation comprises a copper and cobalt processing facility that treats concentrate purchased from various suppliers in Zambia and the Democratic Republic of the Congo (“DRC”). The plant is accessed by either the main railway line or the tarred road between the copperbelt and Lusaka.
SHEC report
Safety performance frequency rates
| Frequency rates |
F2008 |
F2009 |
| Non-lost time frequency rate |
14,9 |
108,0 |
| Lost time injury frequency rate |
11,0 |
22,0 |
| Total recordable injury frequency rate |
25,9 |
130,0 |
| Reportable injury frequency rate |
14,9 |
30,0 |
| Serious injury frequency rate |
– |
15,0 |
| Lost day severity rate |
14,9 |
97,0 |
| Fatality frequency rate |
– |
– |
Safety and health
Revised methods of collecting, defining and collating safety performance frequency rates in order to comply with the new Metorex safety standards came into effect at the operation in F2009. As a small surface operation with a limited workforce Sable has historically had a good safety track record. The inflated safety figures for F2009 are a reflection of the new reporting definitions. The most serious injury for the year was a hand injury which resulted in the injured being away for 21 days and this increased the severity rate statistics.
Environment
A new system for measuring and recording environmental incidents was implemented at Sable in April 2009. Environmental incidents at Sable were limited to minor occurrences of higher than normal emissions at the acid plant as a result of stopping and starting the operation. These were of short duration and were reported accordingly.
| Ruashi I/Sable |
|
Year |
| |
|
June 2008 |
June 2009 |
| Copper produced |
(t) |
10 767 |
4 889 |
| Copper sold |
(t) |
8 800 |
5 588 |
| Cobalt produced |
(t) |
565 |
151 |
| Cobalt sold |
(t) |
386 |
252 |
| Mining profit before depreciation |
(R’000) |
176 915 |
11 470 |
| Depreciation |
(R’000) |
35 244 |
35 826 |
Serving the community
The labour force for Sable resides in the Kabwe Municipal Council housing area and Sable therefore supports the local community and assists the Kabwe Municipal Council in various projects. Over the past year this support ranged from waste removal to the installation of a clock tower at the Kabwe Municipal offices. Sable assists local community churches and recently refurbished the St Margaret’s Anglican Church built in 1926.
A number of additional projects were supported and these are listed in the Corporate Social Investment section.
Operational review
The F2009 copper cathode production of 4,889 tons was based on Ruashi’s oxide concentrate feed, coupled with some locally sourced ore. Oxide concentrate deliveries from Ruashi Phase I ceased in December 2008.
In the second quarter, Sable secured 4,500 tons of third party heavy medium separation (“HMS”) concentrate at a grade of 26 per cent acid soluble copper. This supply was suspended in December 2008 when the London Metal Exchange copper price collapsed and the supplier operations in the Congo were placed on care and maintenance. In the latter half of the year, Sable received only 2,389 tons of locally sourced ore and copper production was low at an average of 183 tons per month.
In March 2009, Sable secured an off-take agreement to supply the operation with 21,000 tons of oxide ore at an average grade of 22 per cent scheduled for the period to December 2009. Deliveries commenced in May 2009 and Sable had received 3,582 dry metric tons of oxide ore by year-end.
The copper cathode tonnage improved to 678 tons in June 2009, while sales for the year totalled 5,588 tons of copper.
In the year under review, profits were materially affected by the collapse of both the cobalt and copper prices in the latter months of calendar 2008. In addition, revenue was materially impacted by a lack of ore supply following the collapse in global demand. The total operating costs of the company reduced in line with the lower production levels.
Capital expenditure for F2009 was limited to US$0.4 million. Capital works were carried out on Zinc electro mining plant, additions to plant and machinery, a compressor and a crushing plant for pulverising oxide ore. An acid storage tank with greater capacity was erected and a new forklift was purchased.
Looking forward
Sable is confident of being able to source suitable ore tonnages and grades from both the DRC and the local market well into F2010. The terms under which these ores are sourced are such that Sable should operate profitably for the year provided copper prices remain robust. Capital spending will be limited in F2010. |
