Semafo has purchased a new mining fleet for its Samira Hill mine in Niger. These acquisitions will ensure higher availability and productivity, as well as reduce cash operating costs   at the operation. The equipment consists mainly of two Komatsu D275-5R dozers, ten Komatsu HD605-7R haul trucks and two Komatsu PC1250SP-8R hydraulic excavators. Machinery is scheduled to arrive on site in September and October 2010 and will be fully operational in the fourth quarter of 2010.

Samira Hill will benefit from substantial cost savings associated with civil works previously outsourced, such as raising the tailings dams, road maintenance, transportation and ore re-handling to the mill. The transition to owner mining will be sustained through the efforts of our experienced management and staff. Semafo anticipates a smooth changeover from the current mining contractor.

The company is pleased with the progress achieved to date on the selection and projected delivery dates of the new mining fleet for Samira Hill. Two new Cat 988H wheel loaders are already on site and operational.

“Historically Semafo’s experience as owner miner has proved successful, resulting in improved operating costs and productivity,” said Benoit Desormeaux, Semafo’s Executive Vice-President and COO. “Samira will undoubtedly benefit from our vast experience in terms of logistics, inventories and management. We are confident that the results of this strategic investment will continue to optimise and enhance performance to generate superior cash flows, thereby increasing shareholder value through improved financial performance.”