Production Bottlenecks Eased: Can Alara Sustain This Growth?

Operational Upgrade at Al Wash-hi Majaza

Alara Resources Limited (ASX, AUQ) has announced a significant operational milestone at its Al Wash-hi Majaza Copper-Gold Project in Oman. The company, through its 51% owned subsidiary Al Hadeetha Resources LLC, has successfully commissioned two new interim tailings filter presses sourced from China. This upgrade addresses previous bottlenecks in tailings management and is expected to substantially enhance plant performance.

Boosting Efficiency and Production

Prior to this upgrade, the plant operated at around 62-65% of its design capacity, following earlier improvements from a baseline of approximately 50%. The new presses are anticipated to push operational efficiency to between 85% and 90%, translating into a monthly concentrate production increase from roughly 2376 dry metric tonnes to an estimated 3000-3200 dry metric tonnes. This marks a notable step forward in Alara’s ability to deliver consistent, high-volume output.

Reducing Downtime and Enhancing Throughput

The introduction of the interim tailings filter presses has led to a significant reduction in unplanned stoppages, a key factor limiting throughput in the past. Operating currently in semi-automatic mode under the supervision of the original equipment manufacturer, these presses have already demonstrated improved reliability. This operational enhancement is critical for maintaining steady production flows and meeting market demand.

Looking Ahead, Permanent Solutions

While the interim presses mark a substantial improvement, Alara is progressing with the acquisition of a permanent tailings filter press. Once installed, this equipment is expected to enable the plant to operate at or near full design capacity, further solidifying the company’s production capabilities. This ongoing investment underscores Alara’s commitment to operational excellence and sustainable growth.

Management Perspective

Alara’s Managing Director, Atmavireshwar Sthapak, highlighted the importance of this upgrade, stating that it strengthens the company’s ability to achieve consistent, high-volume production and reflects a focus on delivering near-term value for shareholders. The successful commissioning of these presses is a tangible demonstration of Alara’s strategic approach to enhancing its core operations.