Oman-based copper mining firm Al Hadeetha Resources LLC says it has obtained around $15 million in additional finance from its existing project finance lender Sohar International Bank – funds that will be utilised to support the completion and commissioning of its Al Washi-hi Majaza Copper-Gold project in Al Mudhaibi Wilayat.
Construction of the project’s 1 million tonnes per annum (MTPA) copper concentration plant is now well progressed, with approximately three quarters of all civil work completed by end of April 2023, according to the company.
Around $8 million of the additional financing facility will be used to acquire spare parts, reagents, lubricants and other consumables needed to commission the plant. The remaining $7 million will be used for general working capital, including the payment of utility bills and mining and camp running costs etc, ahead of mine output revenue generation, the company said.
A host of major project milestones have been achieved to date, including: Primary crusher retaining wall steel erection and concreting; Stockpile tunnel; Reagent storage building foundation and block work; Power substation; Grinding and flotation electrical room foundation, slabs and roof; Concentrate and tailing thickener tank area; SAG and ball mill foundations; Conveyor foundations (for ROM handling); and Tailing filter building.
Australian-based mining firm Alara Resources has a 51 per cent stake in Al Hadeetha Resources Company. Atmavireshwar Sthapak, Managing Director, Alara, said: “We are thrilled to have put the additional finance facility in place, with our existing lender Sohar International Bank. This results in a simpler finance structure than the alternative of obtaining this amount from a future off-take partner. It ensures AHRL, the JV company developing the Al Wash-hi Majaza Copper-Gold Project, has the finance required to prepare to operate this exciting asset ahead of mine output revenues starting to flow.
With a raft of construction tasks already complete, copper product from the Al Wash-hi Majaza Copper-Gold Project will soon be making its way to clients. When it does so, Alara will transition from a pure explorer into a resources company holding a 51 per cent stake in a new mine producing a key, in-demand base metal.” The copper-gold project is slated for commissioning in September 2023.