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MINING | Alphamin Resources
ALPHAMIN
A remarkable five-year journey to co
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RESOURCES
onflict-free tin production in the DRC
MINING | Alphamin Resources
In June 2019, Alphamin Resources completed C4 commissioning of the processing plant at its Mpama North Tin Project, located deep in the jungle of North Kivu in Democratic Republic of Congo (DRC). The C4 certificate indicates that each plant component can successfully operate with ore material. C5 stage/commercial production – attained when the facility can be run and held at nameplate capacity for 48 hours – was completed by the end of July. This major milestone is a fitting bookend for Alphamin’s remarkable fiveyear journey from concept to full production at Mpama North. What began with an idea to build a responsibly produced tin mine in an area scarred by conflict and exploitation will end with a globally significant project that will also serve as a major catalyst for socioeconomic development in the region. “The plant is running remarkably well given the time period its been running for,” says TSXV and JSE-listed Alphamin’s then CEO Boris Kamstra. “We naturally would like to get our recoveries slightly higher and we have plans in place to lift them, but overall the plant is doing very well. “The mine is producing sufficient material and the grade is surprising us on the upside. Things are going as smoothly as one could wish.” Construction of Mpama North –
Resource Global Network the first phase of the mine at Bisie – was completed on time and first production was achieved in the second quarter of 2019. In the following quarter, Alphamin boosted production by 269% to 2,345 tonnes of contained tin and overall plant recoveries improved to 65% in August and September, edging towards the company’s stated target of 72%. Tin grades mined and processed also increased in Q3 to an average 5.6% Sn, which is expected to taper off to 4-5% Sn during the final quarter of the year. Alphamin said it expects to produce 2,000-2,200 tonnes of contained tin in Q4.
A globally significant tin mine Alphamin believes Bisie is one of the highest grade tin resources in the world, with two known deposits – Mpama North and the adjacent Mpama South, where access work is already taking place to develop the company’s next deposit. There are also additional exploration targets further South. Current metrics estimate that Mpama North will produce approximately 10,000 tonnes of contained tin a year, based on a mineral resource estimate of 208,100 tonnes in the measured and indicated category. The 12.5-year underground operation has a short payback period and it should fall into the lowest cost quartile of all tin producers, while generating an average EBITDA of
MINING | Alphamin Resources
“The plant is running remarkably well given the time period its been running for. The mine is producing sufficient material and the grade is surprising us on the upside” Boris Kamstra – Alphamin Resources CEO
“In addition, whenever we encountered
$110 million per year at tin prices of around
Congo SARL was Alphamin’s choice of mining
$21,000 per tonne, according to Alphamin.
contractor at Mpama North.
However, these figures are currently being
“On the ground, we had Congo River doing
revised by the company in connection with
our earthworks and they were absolutely
a change of mining method. “The mining
exceptional. Getting kit into our region is a
method has always been a challenge and we
challenge, let alone to the mine itself. They
have been faced with the conundrum of how
did all the earthworks and civils impeccably.
artisanal workings, we would get a high volume of water coming to us and we were concerned about the risks of mud rush. In a defensive mode, we went to a cut and fill type mining operation, which we have been doing to date while we get a better feel for the orebody and decide on our optimal mining method.” South Africa-based Bara Consulting carried out the initial mining study at Mpama North before DRA took over the studies via Tony Cox – a sub-level caving expert. Reliant
to mine efficiently and safely without leaving too much orebody behind,” says Kamstra.
“Then we had Group Five doing all the structured steel, piping and mechanical and
When Alphamin first started drilling the
electrical installation. Locally, we used Busy
orebody back in 2012 it was as much
Bee as our chartered flights partner, ATS is
exploration as it was resource drilling, and a
our catering and camp services provider and
decision to mine using sub-level caves was
TMK our logistics provider.
made using the information provided by core drilling results.
“Our local partners have been quite remarkable in their ability to get things
However, when the company eventually went
moving and keeping us on schedule, all of
in underground and made the first few drill
our sub-contractors and service providers
blasts, several issues quickly became evident.
have been exceptional,” declares Kamstra.
“The host rock was fragmenting far more than the mineralised material which would give us major problems in the flow of the cave.
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MINING | Alphamin Resources
Stimulating local business
Kamstra often discusses the tremendous aptitude for work expressed by the residents
More recently, Alphamin has looked to
of the Bisie region that have been engaged
reverse engineer much of the operational
on the project, and the former CEO lights
components it requires at Bisie, while also
up when asked about the story of one
finding ways of developing enterprises for
man who encapsulates the sheer grit and
local people and integrating small businesses
determination of the local people.
into the project’s supply chain. “One of our employees is a man called For example, Alphamin is growing a network
Anderson. Before he came to us, he taught
of local small-scale farmers for the camp’s
himself English using YouTube and he had to
fresh vegetable requirements. This centrally
do it after midnight because that’s when data
organised structure is connected to a wider
charges are lower. Since then he has worked
network of farmers in the region, but still
his way up the ranks and today he is one of
gives ATS a single point from which to place
our key control room operators.
their orders. The company is looking to expand this enterprise into other staples
“I walk into the control room one day and
including fish, poultry and eggs.
there is Anderson, sitting behind six screens with three two-way radios blaring out. He
ResourceGlobal GlobalNetwork Network Resource
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is sitting at the heart of our operation and
The conflict-free pledge
he’s able to keep the ship steady and going
A fundamental part of Alphamin’s licence to
strongly.
mine is derived from its promise to deliver conflict-free tin in the Bisie region, where
“That gives us an enormous sense of pride
previously up to 2,000 artisanal miners toiled
and it’s nice to see that we are able to find
in rudimentary deposits at the mercy of
people who don’t necessarily have the
armed militias controlling the distribution of
skill required at hand but have more than
tin from the area into global supply chains.
sufficient capacity, willingness and desire to learn how to do it, and then do it very
At one stage this sprawling illegal mining
successfully.”
network hosted 16,000 people at Bisie and accounted for 4% of global tin supply. It
Alphamin ultimately plans to count its entire
soon became apparent to several major
operational staff from the local area, and
corporations that their supply chains were
this is just one way in which the company is
tainted by chaos, misery and death.
making a huge difference in the region which still harbours scars from years of artisanal
In response to this grave realisation, an
conflict-driven mining.
international legislative drive aimed at preventing the proliferation of conflict-
MINING | Alphamin Resources
driven minerals into supply chains led to the
However, the recent outbreak of the Ebola
development of several initiatives including
virus in the South Kivu and Goma areas of
the Dodd-Frank Act.
the DRC poses a significant risk to Alphamin’s operations, although the company has
“We are delighted to be producing conflict-
enacted strict protocols to prevent the spread
free tin from the very site that was catalytic
of the disease.
in getting conflict minerals recognised and bringing the Dodd-Frank legislation to light,”
An individual carrying the virus is
Kamstra exclaims.
only infectious when they have a high temperature, so Alphamin has erected
“The impact in the area has been enormous,
temperature monitoring stations at several
from massive improvement in safety
important checkpoints. So far there have
and security to the development of local
been no instances of infection within the
businesses. We’ve opened up the logistics to
Bisie area.
the area so now there are shops selling all sorts of produce. Local farmers producing
“We have a rigid system in place whereby you
palm oil and other products are now able
cannot get on the plane in Goma until your
to access broader markets beyond the local
temperature is taken. And when you get off
areas.”
the place it’s taken again and again when you enter the mine site. You’re likely to have your
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temperature taken 12+ times in a day. This
“I think it’s terrific that in the middle of one
allows us to quickly identify potential Ebola
of the most inaccessible areas possible,
carriers to treat them and isolate them from
with every reason why you shouldn’t be
others.”
able to do what we done – there it stands, a
Coming full circle After seeing the Bisie project through from
tin producing mine! And it will produce tin for many years and continue to add to the wellbeing of the area.”
early feasibility to production in just under five years, Kamstra recently decided to step
Alphamin is aiming on extending the life of
down from his role as CEO of Alphamin.
the Bisie mine through the development
Commenting on the legacy he leaves behind,
of the Mpama South deposit, which could
the outgoing boss says: “It’s been a wonderful
be funded by revenue generated from the
privilege to be involved in a project like this
Mpama North ore, as it seeks to cement
and to have been able to influence such an
Alphamin’s position as a long-term catalyst
incredible part of the world for the better.
for socioeconomic development in the region.
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Published by Anderson Murray Media Ltd
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