Anglo American Platinum Limited |
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Bafokeng-Rasimone Platinum Mine (BRPM)
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BAFOKENG-RASIMONE PLATINUM MINE (BRPM) (non-managed - 33% owned) |
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MINE OVERVIEW
Bafokeng-Rasimone Platinum Mine is a 67:33 joint venture between Royal Bafokeng Resources and Rustenburg Platinum Mines Limited and is managed by Royal Bafokeng Platinum Management Services (Pty) Limited. The mine is situated in the North West Province of South Africa, approximately 25 kilometres north of the town of Rustenburg. It forms part of the western limb of the Bushveld Complex and operates under a mining right covering a total area of 87 square kilometres.
Current mine infrastructure consists of two decline shafts, namely North and South Shafts. The Styldrift vertical shaft is currently being sunk as an expansion project on the Merensky Reef. The majority of the mining at BRPM occurs on the Merensky Reef, although the mine also began to mine the UG2 reef in 2010. The mining method at BRPM is conventional breast stoping with strike pillars. The operating depth for the current workings are between 50 m and 500 m below surface
BRPM Mine’s life-of-mine (LoM) extends to 2062. The current LoM plan consists of a Mineral Resource (exclusive of Ore Reserves) of 25.5 4E million ounces and an Ore Reserve of 9.6 4E million ounces.
TRANSACTION
The BRPM joint venture was originally formed in 2002 as a 50:50 joint venture between Royal Bafokeng Resources (Proprietary) Limited (“RB Resources”), and Rustenburg Platinum Mines Limited (RPM), a wholly owned subsidiary of Anglo American Platinum Limited. The joint venture was restructured in 2009 to enable RB Resources to acquire a majority 67 percent interest from 7 December 2009, with RPM holding the remaining 33 percent interest.
A new Company (Royal Bafokeng Platinum Limited, “RB Plat”), an independently operated and managed, black empowered mid tier PGM producer, was established during the restructuring. RB Plat’s key asset is a 67% controlling stake in the BRPM joint venture. RB Plat has the benefit of entrenched broad based black economic empowerment (BEE) ownership by the Royal Bafokeng Nation (through its wholly owned investment vehicle Royal Bafokeng Holdings (Proprietary) Limited (RBH)). The restructuring has ensured that all of the BRPM joint venture’s mining and prospecting rights were converted to “new order” rights as required under South African law. On 4 January 2010, RB Plat assumed operational control of BRPM in order to run the mine’s current operations and to develop resources to pursue expansion projects.
RB Plat was successfully listed on the JSE on the 8th of November 2010 with Rustenburg Platinum Mines Limited, holding an effective interest in the listed company of 12,6% after listing.
KEY ACHIEVEMENTS
- BRPM Mine equivalent refined platinum ounces increased by 7% as a result of increased plant throughput and early mining of UG2 ore.
- Anglo American Platinum Limited’s share of cash on-mine costs (including plant) and capital expenditure decreased by 39% to R452 million and 33% to R245 million respectively as a result of accounting for BRPM on an equity basis from November 2010.
OPERATIONAL REVIEW
(All production and cost metrics shown in the following sections are the 100% view of the Joint Venture mine for the whole year, unless specifically referred to as Anglo American Platinum Limited’s attributable share.)
Regrettably, BRPM had three fatalities in 2010 (one in 2009). The LTIFR improved by 19%, from 1.17 in 2009 to 0.95 in 2010.
The mine produced 184.6 koz equivalent refined platinum ounces in 2010, a 7% increase from 2009 as a result of increased plant throughput and early mining of UG2 ore. The mine’s immediately available Ore Reserves and immediately stopeable Ore Reserves are 27.9 months and 5.1 months respectively.
Anglo American Platinum Limited’s share of cash on-mine costs (including plant) decreased by 39% to R452 million due to the restructuring of the BRPM JV with Anglo American Platinum Limited now accounting for its 33% interest in BRPM on an equity basis. The cash operating cost per equivalent refined platinum ounce (including Anglo American Platinum Limited’s allocated downstream costs) increased by 3% to R10,761.
CAPITAL EXPENDITURE
Anglo American Platinum Limited’s attributable share of capital expenditure for 2010 was R245 million, a 33% decrease over 2009, also as result of equity accounting. Capital Expenditure was incurred primarily on the BRPM Phase 2 and Styldrift projects.
PROJECTS
Phase 2 project
BRPM has continued with the development of the Phase 2
project, which will extend the operations at both the North and
the South shafts by an additional five levels on Merensky reef
together with their associated infrastructure.
Phase 3 project
The Phase 3 replacement project for the North shaft was
approved in November 2010 and provides for the deepening of
the decline to 15 level and extension of the working life on
Merensky reef by 8 years.
Styldrift project
The Styldrift project provides for the production of 230 kt per
month of Merensky Reef from 2017. This will be done through a
combination of bord and pillar and conventional mining methods.
Project site work continued through 2010.
Additional projects
The feasibilities of additional projects at BRPM are being
evaluated as part of the mine extraction strategy. The main focus
is on the UG2 reef horizon.
OUTLOOK
Production will remain at current levels in 2011, and the BRPM Phase 2 and 3 and Styldrift projects will continue as scheduled. UG2 early mining will continue in 2011.
