Anglo American Platinum Limited |
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Modikwa Platinum Mine
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MODIKWA PLATINUM MINE (non-managed - 50% owned) |
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MINE OVERVIEW
Modikwa Platinum Mine is an independently managed, 50:50 joint venture between ARM Mining Consortium Limited and Rustenburg Platinum Mines Limited. The mine is on the border of the provinces of Mpumalanga and Limpopo in South Africa, approximately 25 kilometres west of the town of Burgersfort. It forms part of the Eastern Limb of the Bushveld Complex and operates under a mining right covering a total area of 140 square kilometres.
The current mine infrastructure consists of two major decline shafts, namely North Shaft and South Shaft, three adits on Onverwacht Hill and a concentrator. The mine is a hybrid operation with conventional stoping, and trackless development and ore clearance. Modikwa Platinum Mine mines the UG2 horizon exclusively, from surface to 450 m below the surface.
The mining method at Modikwa is conventional breast stoping with strike pillars. Modikwa Platinum Mine's life-of-mine (LoM) at current production levels extends to 2087. The current LoM plan consists of a Mineral Resource (exclusive of Ore Reserves) of 60.5 million 4E ounces and an Ore Reserve of 8.4 million 4E ounces.
TRANSACTION
In September 2011, Modikwa Platinum Mine acquired the prospecting right for a portion of the Doornbosch adjoining property from Randgold and Exploration Company Limited. The property has Mineral Resources of 160,000 4E ounces and will provide short-term flexibility to South Shaft.
KEY ACHIEVEMENTS
- Modikwa Platinum Mine achieved eight million fatality-free shifts on 21 June 2011 and has been awarded the Department of Mineral Resources Safety Achievement Flag for Platinum Mines. It closed the 2011 calendar year on 8.77 million fatality-free shifts, a record for underground mining operations.
- The completion of a 12 km tar road in the Maandagshoek community at a cost of R63 million.
- Progress was made on the sinking of two declines at South 2 shaft to access -3 to +4 levels.
OPERATIONAL REVIEW
Modikwa Platinum Mine recorded zero fatalities for 2011 and achieved 8 million fatality-free shifts on 21 June 2011. The mine has been fatality-free for the past 68 months. The lost-time injury-frequency rate improved from 0.68 in 2010 to 0.60 in 2011.
Equivalent refined platinum ounces attributable to Anglo American Platinum Limited (Anglo American Platinum), which included 62.4 koz purchased from the joint-venture partner, decreased by 4% to 124.8 koz. The tonnage milled was 2.3 Mt. The main contributing factors to this decrease were safety stoppages, poor ground conditions, and lack of immediately available and stopeable Ore Reserves. The 4E built-up head grade decreased by 4% to 4.56 g/t.
Anglo American Platinum' share of cash on-mine costs increased by 6%, from R791 million in 2010 to R841 million in 2011. The cash on-mine cost (including concentrator) per tonne milled increased by 6% to R737, while the cash operating cost per equivalent refined platinum ounce increased by 10% to R14,881.
CAPITAL EXPENDITURE
The Company's attributable share of capital expenditure increased from R87 million in 2010 to R178 million in 2011 as a result of the UG2 Phase 2 expansion project.
The UG2 Phase 2 replacement project feasibility study is currently under review, with approval anticipated in the second quarter of 2012.
This project includes the deepening of the existing North 1 and South 1 Decline shafts, together with the development of a new South 2 decline shaft. Steady-state production of 143 Pt oz will be reached in 2019 and is expected to continue for a period of six years.Once in production, the Project will increase the overall life-of-mine by 24 years.The establishment of the South 2 Shaft portal and access road has been completed, and the sinking of both the material and chairlift declines have begun.Project work executed in 2011 was done without any lost-time injuries.
OUTLOOK
Production in 2012 is expected to remain flat.
