Gippsland Limited will increase monthly production of tin-in-concentrate at its Abu Dabbab alluvial mine in Egypt to 60 tpm from February 2013 and expects to maintain output at this higher rate for eight months. Revenue from tin concentrate sales over this period are forecast at US$12.4 million, approximately double the life of mine operating and capital costs. Mining of the placer deposit began in the second quarter of this year and the small operation was originally expected to produce some 550 tonnes of tin-in-concentrate over a 17 month life.
Gippsland’s main Abu Dabbab tantalum/tin/feldspar project remains on hold as the company seeks to secure US$225 million in financing. The planned capacity of the main project to be run by Tantalum Egypt (a 50:50 joint venture with the Egyptian government) is some 2,300 tpy of tin metal over a 14 year mine life, with 925,000 pounds of tantalum oxide (Ta2O5) a year in slag. The planned mine could potentially be the world’s largest tantalum supplier, accounting for 25% of primary supply.
