CAPEX & OPEX

Capital expenditure (CAPEX) has been estimated using firm prices, budget prices, list prices and current industry costs. Estimates for major areas of the plant were obtained from two Johannesburg based independent engineering consultants: Logiproc and Consulmet. Firm quotations for long lead items such as ball mills and crushers were also obtained from suppliers and used in the CAPEX estimate. The capital estimate can be assumed to have an accuracy of 25 %.

The CAPEX estimate to construct a 1.2 Mtpa plant and infrastructure at Arcadia including all direct and indirect costs is estimated at USD52.5 Million, with this estimate including a 10 % contingency.  The table summarises the main CAPEX items for Arcadia:

 

CAPEX Estimate Summary for Arcadia Project

Area

Basis of Estimate

CAPEX (USD)

Mining

Estimate from mine planning

$9 906 000

Crushing and Screening

Kenmore

$2 764 000

DMS

Logiproc

$3 747 000

Flotation

Logiproc

$9 814 000

Filtration Drying Bagging

Logiproc

$4 072 000

Reagents and Stores

Logiproc

$4 062 000

Tailings Storage Facility

Blonton

$3 782 000

Engineering and Services

Logiproc

$4 554 000

Utilities, Infrastructure, Transport Depot

BioMet

$5 780 000

 

Sub Total (Direct and Indirect Costs)

$48 481 000

Contingency

 

$4 018 000

TOTAL

 

$52 500 000

OPERATING COST ESTIMATES

Operating costs (OPEX) for the Arcadia Project have been based on the mining schedule, metallurgical variables and the mass balance. Costs are based on existing mining operations within Zimbabwe. Reagent costs are based on firm and budget quotations or list prices. Labour and administration costs are based on existing mining operations within Zimbabwe, projected workforce numbers and anticipated labour costs.

Maintenance costs are calculated based on similar existing operations in the region and supplier information. The crushing, milling and flotation costs and respective power consumptions per tonne are based on a similar operation in the region for which >18 months of data was analysed. The crushing, milling and flotation costs per tonne include wear items and maintenance costs. The OPEX estimate can be considered to have an accuracy of 25 %.

The total operating expenditure (OPEX) was calculated to be USD66/t of ore milled or USD342/t of Li2O concentrate produced. By including Ta2O5 concentrate credits, the unit OPEX for production was reduced to USD320/t concentrate. The breakdown of the OPEX costs are summarised in the table.

 

OPEX Estimate Summary for Arcadia Project

Activity

Operating Cost (USD)

$/t ore (LoM)

Per annum (avg. LoM)

Per tonne concentrate

Mining

$13

$15 014 000

$69

Crushing

$8

$9 349 000

$43

DMS & Spirals

$3

$2 892 000

$13

Milling & Flotation

$6

$7 001 000

$32

Reagents

$6

$7 227 000

$33

Power

$3

$3 309 000

$15

Labour

$3

$3 737 000

$17

Freight & Port

$18

$20 514 000

$94

Administration

$5

$5 480 000

$25

Total OPEX

$66

$74 525 000

$342

With Ta2O5 Credit

 

 

$320