The Australian-based Gippsland Ltd. has ceased operations on its alluvial tin operations at Abu Dabbab, Egypt, to concentrate on the progression of its nearby hard-rock tantalum-tin-feldspar project.
The alluvial operation, which in 2013 shipped concentrate containing 120 tonnes of tin, has consistently underperformed due to a series of technical and productivity issues. Performance has suffered from a 15 – 20% lower than planned head grade from the 81,000 tonne ore stockpile. An unrecoverable tin component in the feed has also resulted in a much lower tin yield to the final concentrate than expected. Efforts to raise productivity and improve metal recovery have been hindered by the high fixed cost component of the operation and poor work practices. “On this basis, it was decided that there were no options remaining other than to close the operation immediately”, the company said.
Focus has shifted to advancing the Abu Dabbab tantalum-tin-feldspar project. It is currently undergoing a revised feasibility study and Gippsland is now looking to secure finance and begin development. The company signed a non-binding agreement in August for the toll smelting of the tin-tantalum concentrates. As a result, construction of a smelter and associated infrastructure is unnecessary, meaning reduced technical risk and reduction of $15-20 million in start-up capital. Gippsland and the Egyptian government hold equal ownership of both Abu Dabbab sites in the Central Eastern Desert.
