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K&S – Full Commercial Production nears with Commencement of Mining Operations

IRC Limited (“IRC” or the “Company”, together with its subsidiaries, the “Group”; Stock Code 1029) is pleased to announce that the commissioning of K&S continues to make good progress.

In order to support a continuous trial production of the Processing Plant and ensure the stable work in preparation for full scale production, a continuous supply of required quality feedstock has to be provided. To achieve that K&S has re-commenced its open-pit mining operations on site which will allow a supply of run-ofmine-ore to the Processing Plant in addition to the ore stockpiles made previously. K&S is on track for commercial production in early 2017 as previously guided.

Mining operations during the construction phase outpaced the build rate and consequently when a suitable stockpile was achieved, the mining process was wound down. In order to support an increasing appetite for iron ore feedstock, IRC is proceeding with stripping and mining works in accordance with the mining plan.

The mining contractor has re-commenced the mining process; firstly with drilling and blasting operations to prepare ore volumes in the open pit, and later with excavation and hauling operations to replenish ore stockpile that will be used for plant feeding. This week the drilling work has begun. Blasting, excavation and hauling works are planned to be recommenced before the end of the year with the fleet of hauling trucks and shovels being delivered and assembled on site.

Commenting on the news above, Yury Makarov, Chief Executive Officer of IRC said: “I am excited to report that our mining operations are recommencing. This is yet another milestone in the commissioning programme. The need to replenish our raw material feedstock is a solid proof that our hot commissioning programme is progressing well. The operation of the plant is gradually taking shape and we are confident that K&S will be on track for full ramp-up and commercial production early next year as previously guided.”

Source: IRC Limited

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