Premier African Minerals Limited has chosen African Mining and Exploration (Afmine) as principal mining contractor for the RHA Tungsten Mine (RHA) in Zimbabwe.
Afmine is a mining and exploration services company that operates in Zimbabwe.
Under the contract, Afmine will have responsibility for upgrades, development of underground operations and re-commencement of open-pit mining at RHA.
Premier African Minerals CEO said: "The development of RHA is progressing well and the Afmine team successfully mobilised and commenced works on site. Afmine has a reputation for safety and efficiency and, inter alia is contracted to some of the major mining houses within Zimbabwe.
“At the same time, negotiations for phase two are well advanced with the essential requirement being the delivery of up to 28,000t but not less than 23,000t per month from the open-pit. It is particularly gratifying to see the commitment from all contractors and staff to the mine during this period leading to installation of the XRT sorter and recommencement of operations.”
The contract involves two phases. In the first, Afmine will start rehabilitation works in the underground and prepare for open-pit operations. The initial phase has a duration of 14 weeks.
The second phase will be subject to further agreement for a longer term contract, but entirely dependent of achieving deliverables agreed in the initial phase, and acceptable pricing.
Under the contract, a one-off mobilisation cost of $50,000 requires to be paid. Two subsequent milestone payments of $75,000 will then need to be paid when the agreed milestones have been met.
The contract is structured to ensure delivery of a minimum of 12,000t at a fixed cost per tonne.