TerraNova Copper & Minerals Group Business Plan — Operations, Processing & Vertical Integration

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Section 9 · 10 of 21

Operations, Processing & Vertical Integration

TerraNova’s operating model is a single, integrated flow-sheet from orebody to finished product. Ore is mined by block cave, milled and floated in the concentrator, smelted to anode, refined to cathode, and drawn to copper rod, with vermiculite, magnetite, sulphuric acid, nickel sulphate and precious metals recovered along the way. Integration captures margin at every step and turns environmental obligations (sulphur capture) into revenue.

The integrated flow-sheet

Stage

Input

Output

Capacity

Mine (block cave)

Orebody

Run-of-mine ore

14 Mt/yr

Concentrator

Ore

Copper concentrate

220 kt concentrate

Smelter

Concentrate

Copper anode + SO₂

160 kt

Refinery

Anode

Refined copper + slimes

75 kt refined

Rod plant

Refined copper

Copper rod

Value-added

Acid plant

Smelter off-gas

Sulphuric acid

By-product

Minerals plant

Ore / tailings

Vermiculite, magnetite

240 kt / 1.4 Mt

Energy strategy

Electricity is a mining company’s largest controllable cost and, in South Africa, its largest reliability risk. TerraNova’s R180m renewable-energy programme, solar generation with grid wheeling and, over time, storage, reduces both the cost and the carbon intensity of the integrated complex, and insulates production from grid instability. Renewable self-generation is simultaneously a cost lever, a reliability safeguard, and an ESG credential valued by development-finance funders.

Figure 13. Margin progression as integration and scale mature

Digital and autonomous operations

Modern block-cave mines are among the most automated in the industry. TerraNova’s operating model incorporates remotely operated and, over time, autonomous load-haul-dump and haulage fleets; real-time cave-monitoring and geotechnical sensing; predictive maintenance on crushing, conveying and hoisting; and an integrated operations centre that optimises the flow-sheet from drawpoint to cathode. Automation improves safety (removing people from the cave), lifts equipment utilisation, and reduces the labour intensity of deep mining, material advantages given the technical scarcity of experienced underground crews.

Water and energy balance

The integrated complex is designed around tight water and energy balances. Process water is recycled through thickeners and return-water dams to minimise fresh-water draw; the smelter’s waste heat and off-gas are captured (the latter as sulphuric acid); and the renewable-energy programme progressively displaces grid power. Because electricity and water are simultaneously the largest cost levers and the largest reliability risks in South African mining, engineering them tightly from the outset is both an economic and a resilience decision, and a central plank of the ESG case that follows.

StrengthIntegration turns obligations into revenue

The clearest expression of the integration thesis is that environmental obligations become products: sulphur that must be captured becomes saleable sulphuric acid; magnetite that would otherwise report to tailings becomes a co-product; and waste heat is recovered. Each is simultaneously a compliance measure and a margin contributor, the structural reason an integrated operation out-earns a concentrate exporter.