Pandora Platinum Mine

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PANDORA PLATINUM MINE
(non-managed - 42.5% owned)
Safety – Fatalities: 0 (0)        LTIFR: 1.53 (2.0)
Resources inclusive of Reserves
UG2: 157.1 Mt arrow 21.7 4E Moz
JV partner: Lonmin (42.5%)
Bapo-Ba-Mogale tribe (7.5%)
Mvelaphanda Resources (7.5%)

MINE OVERVIEW

Rustenburg Platinum Mines Limited has a 42.5% interest in the Pandora Joint Venture. The other partners are Eastern Platinum Limited (42.5%) (a subsidiary of Lonmin Plc), Bapo-Ba-Mogale Mining Company (7.5%) and Mvelaphanda Resources (7.5%). The mine is situated in the province of North West in South Africa, approximately 40 kilometres east of the town of Rustenburg in Lonmin's Marikana mining area. It forms part of the South-western Limb of the Bushveld Complex.

The current mine infrastructure, which belongs to Lonmin, consists primarily of one decline shaft system, namely the E3 decline, which mines UG2 ore exclusively. Pandora is a shallow, conventional underground mine with current workings between surface and 300 m below surface.

The current life-of-mine (LoM) plan consists of a Mineral Resource (exclusive of Ore Reserves) of 19.1 million 4E ounces and an Ore Reserve of 1.9 million 4E ounces.

KEY ACHIEVEMENTS

  • 1.86 million fatality-free shifts were achieved by December 2011.
  • The deepening of the shafts to levels 9 and 10 resulted in an increase in production in the second half of the year.
  • The mine has generated positive free cash flow, deferring the need for funding from the joint-venture partners.

OPERATIONAL REVIEW

Pandora Joint Venture had no fatalities in 2011 (zero in 2010). The lost-time injury-frequency rate improved to 1.53 in 2011, from 2.0 in 2010.

There are no equivalent refined platinum ounces attributable to Anglo American Platinum Limited in the case of Pandora, as all the ore is sold to Western Platinum Limited (a subsidiary of Lonmin). Platinum production amounted to 35.2 koz in 2011, an increase of 2.62% over production in 2010.

FINANCIAL REVIEW

Pandora is equity-accounted for at 42.5%. The mine produced a profit before taxation of R111 million for 2011 which is in line with the prior years profit before taxation of R115 million. Net cash distributions for 2011 totalled R14 million to the Group (2010: R11 million distributions to the Group). 

PROJECTS

The Plan 4 Project was undertaken to maintain the 60 ktpm production of UG2 ore at the existing E3 decline shaft. The project execution remains on track, with completion expected in the second quarter of 2013.

Feasibility studies are also under way to establish the optimal extraction for the deeper reserves in E3 shaft, as well as the adjoining shallow and deep reserves.

OUTLOOK

Production in 2012 is expected to increase as a result of the new levels coming into production.