Anglo American Platinum Limited |
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Khuseleka Mine
(managed – 100% owned)
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KHUSELEKA MINE (managed - 100% owned) |
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MINE OVERVIEW
Khuseleka Mine is situated in the province of North West in South Africa, near the town of Rustenburg and within the Western Limb of the Bushveld Complex. The mine operates under a mining right covering a total area of 26 square kilometres. Current mine infrastructure consists of two operating shaft complexes, Khuseleka 1 (a vertical and subdecline shaft system) and Khuseleka 2 (a decline shaft system). The operating depth for the current workings is between 300 m and 1,000 m below surface.
Mining at Khuseleka occurs on both the Merensky Reef and the UG2 Reef horizons, using conventional breast stoping with strike pillars. Khuseleka Mine's life-of-mine (LoM) extends to 2038. The current LoM plan consists of a Mineral Resource (exclusive of Ore Reserves) of 4.1 4E million ounces and an Ore Reserve of 7.5 4E million ounces.
Tom van der Berg was the general manager at the mine during 2011 before being transferred to Tumela Mine. We would like to thank him for his contribution to the mine during his tenure as general manager.
KEY ACHIEVEMENTS
- Achieved 3.7 million fatality-free shifts in 2011.
- The successful re-equipping and start-up of Khuseleka 2.
- Increased available Ore Reserves.
OPERATIONAL REVIEW
Khuseleka Mine had no fatalities in 2011. The lost-time injury-frequency rate (LTIFR) deteriorated to 1.65, up by 15% from the LTIFR in 2010.
Equivalent refined platinum ounces for the mine were 126,500 for the year, 2% below that in 2010. This performance includes 23,400 new ounces from the reopened Khuseleka 2 shaft, where production ramp-up is progressing according to schedule. The lower ounce production was the result of operational challenges, safety stoppages and an underground fire at the Khuseleka 1 shaft. Immediately available Ore Reserves increased by 53% to 34.2 months, following the successful reopening of the Khuseleka 2 shaft. Tonnes milled increased by 4% to 2.4 million tonnes, while the 4E built-up head grade decreased by 4% to 3.80 g/tonne. Productivity, at 6.1 m², per employee was similar to that in 2010.
Cash on-mine costs increased by 18% to R1.9 billion owing to ramp-up costs for Khuseleka 2, and to mining inflation mainly on employment and electricity costs. As a result, cash on-mine costs per tonne milled rose by 13% to R916 per tonne, while cash operating expenses (the costs after allowing for off-mine smelting and refining activities) per equivalent refined ounce rose to R15,958, an increase of 18% on the 2010 figure.
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CAPITAL EXPENDITURE
Total capital expenditure increased to R337 million in 2011 (R307 million in 2010). Stay-in-business capital expenditure was R127 million (R75 million in 2010), while project capital expenditure amounted to R210 million (R232 million in 2010).
The Khuseleka ore replacement project was approved in March 2007. The scope of the project consists of Ore Reserve development to access the Merensky Reef (between 25 level and 28 level) and the UG2 Reef (between 18 level and 28 level); associated project infrastructure to facilitate the mining of these Merensky and UG2 Resources; and three raise bored ventilation shafts and a surface refrigeration plant.
Merensky Reef development is 98% complete. However, the UG2 Reef development is only 62% complete, against a planned rate of 76%. The latter has failed to meet expectations owing to worse-than-anticipated geological conditions: rock engineering concerns have resulted in the reduction of development dimensions; and in the doubling of development to allow for ventilation requirements.
Production from the project commenced in July 2007. It is estimated that final handover will be achieved during 2015 and that steady-state production will be reached in 2022.
OUTLOOK
The mine expects to increase production as Khuseleka 2 continues its ramp-up, while Khuseleka 1 returns to normal production levels.
