Anglo American Platinum Limited |
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Kroondal Platinum Mine
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KROONDAL PLATINUM MINE (non-managed - 50% owned) |
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MINE OVERVIEW
Kroondal Platinum Mine is a 50:50 pooling-and-sharing agreement (PSA 1) between Aquarius Platinum (South Africa) (AQPSA) and Rustenburg Platinum Mines Limited. The mine is managed by AQPSA and is situated in the province of North West of South Africa, approximately 10 kilometres outside the town of Rustenburg. It is located up-dip of Rustenburg Platinum Mines. It forms part of the South-western Limb of the Bushveld Complex and operates under a mining right covering a total area of 22 square kilometres.
Current mine infrastructure consists of four decline shafts, namely Bambanani, Simunye, Kopaneng and Kwezi and two concentrators. It is a mechanised mine that mines the UG2 horizon exclusively, between surface and 450 m below surface. The mining method is bord and pillar.
Kroondal's life-of-mine (LoM) extends to 2018. The current LoM plan consists of a Mineral Resource (exclusive of Ore Reserves) of 0.6 million 4E ounces and an Ore Reserve of 4.8 million 4E ounces.
OPERATIONAL REVIEW
Regrettably, Kroondal had one fatality in 2011 (one in 2010), prior to which 2 million fatality-free shifts had been recorded. At the Kroondal plant, Mr Hennie Otto was fatally injured in a lifting and equipment-handling incident in October 2011. The lost-time injury-frequency rate decreased by 4% to 0.73 for the year (from 0.76 in 2010).
Equivalent refined platinum ounces attributable to Anglo American Platinum Limited (Anglo American Platinum), which included 104.3 koz purchased from the joint-venture partner, decreased by 18% to 208.6 koz, from 252.8 koz in 2010. The key reason for the decrease in production was the installation of the new support systems and its subsequent impact on the mining cycle. Installation of the new support systems at the Kopaneng and Kwezi shafts has been delayed owing to delays in obtaining drilling rigs and drill steel. The 4E built-up head grade for 2011 was 3.75 g/t.
Anglo American Platinum' share of cash on-mine costs (including concentrator) increased by 7% to R1.37 billion, compared with R1.28 billion in 2010. Cash on-mine cost (including concentrator) per tonne milled increased by 22% to R726 and cash operating costs per equivalent refined platinum ounce increased by 28%, to R14,093. The current mining contract has a high fixed-cost element that results in an increased unit cost when production decreases.
CAPITAL EXPENDITURE
The Company's attributable share of capital expenditure for the year totalled R230 million, 102% higher than in 2010, as a result of the continuation of the K6 Shaft project and the purchase of equipment required for the change in support standards.
The K6 decline shaft project aims to replace UG2 production across the Kroondal operation. At steady-state, it will contribute approximately 87 k Pt oz, over a period of three years. Execution of the K6 decline shaft remains on track and is due for completion in the third quarter of 2013. All project work executed in 2011 was completed with an LTIFR of 0.9.
OUTLOOK
The production of equivalent refined platinum ounces attributable to Anglo American Platinum for 2012 is expected to remain similar to 2011 following the completion of the new support systems.
