Anglo American Platinum Limited |
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Mogalakwena Mine
(managed – 100% owned)
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MOGALAKWENA MINE (managed - 100% owned) |
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MINE OVERVIEW
Mogalakwena Mine is situated 30 kilometres north-west of the town of Mokopane in the province of Limpopo. It operates under a mining right covering a total area of 137 square kilometres.
The current infrastructure consists of four open pits, namely the Sandsloot, Zwartfontein, Mogalakwena Central and Mogalakwena North pits. The mining method is open-pit truck and shovel, and the current pit depths vary from 90 m (Mogalakwena North) to 240 m (Sandsloot). The ore is milled at the new fully operational North Concentrator and at the older South Concentrator.
Mogalakwena’s life-of-mine (LoM) extends well beyond 2060. The current LoM plan consists of an Ore Reserve of 67.7 4E million ounces and a Mineral Resource of 195.0 4E million ounces (exclusive of Ore Reserves), which is roughly 30% higher than the Resources declared in 2010.
Ted Muhajir was the general manager at the mine during 2011 before being transferred to the Corporate Office. We would like to thank him for his contribution to the mine during his tenure as general manager.
KEY ACHIEVEMENTS
- More than three years' fatality-free mining.
- Increases in production output and productivity.
- A strong immediately mineable Ore Reserve that stands at 39.7 months.
OPERATIONAL REVIEW
Mogalakwena Mine had no fatalities in 2011 and has currently achieved 1.85 million fatality-free shifts. Load, haul and blasting teams achieved five years of lost-time injury-free shifts in May 2011. On the other hand, the high number of low-energy incidents in non-production areas posed a challenge for Mogalakwena during the course of the year. The mine incurred eight lost-time injuries during 2011, resulting in a frequency rate of 0.48 compared with 0.40 in 2010.
Equivalent refined platinum ounces increased to 306,300 ounces, up by 18% on the figure for 2010. The higher production was attributable to an increase of 12% in the 4E built-up head grade of 2.91 g/tonne and a 4% increase in milling throughput to 10.8 million tonnes. Productivity measured in tonnes moved per total employee increased to 3,271, up by 13% on the result for 2010.
Cash on-mine costs increased by 15% to R2.8 billion owing to additional volumes, above-inflation increases in diesel and ammonia prices, and labour costs. The cash on-mine cost per tonne milled increased by 10% from 2010, to R254 per tonne. Cash operating expenses (costs after allowing for off-mine smelting and refining activities) per equivalent refined ounce increased to R12,662, some 2% higher than in 2010.
CAPITAL EXPENDITURE
Total capital expenditure decreased to R1,251 million in 2011 (it was R1,350 million in 2010). Stay-in-business capital expenditure was R596 million (R633 million in 2010); while capital waste stripping came in at R563 million (R599 million in 2010) and project capital expenditure at R92 million (R118 million in 2010).
The Mogalakwena North project, aimed at increasing milling capacity at the mine, was approved in 2006. Concentrator optimisation was largely completed during 2011, including the development and optimisation of the tailings storage facilities. This project involved the relocation of a number of villages and the resettlement of 957 families. While most people agreed to relocate in 2008, some villagers resisted the move. Assisted by an independent facilitator, in 2010 the Company engaged with the community and its legal adviser in order to find an amicable solution to the issue. A final position by the resisting community is imminent.
OUTLOOK
Mogalakwena Mine is expected to maintain its equivalent refined platinum output in 2012.
