Anglo American Platinum Limited |
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Siphumelele Mine
(managed – 100% owned)
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SIPHUMELELE MINE (managed - 100% owned) |
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MINE OVERVIEW
Siphumelele 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 43 square kilometres.
The mine consists of three shafts - Siphumelele 1, 2 and 3. In 2011, only Siphumelele 1 was operational as the other higher-costs shafts had been placed under care and maintenance in 2010. As a result, Siphumelele 2 and 3 no longer form part of the mine's operational results.
The developed infrastructure at Siphumelele Mine consists of three vertical and three decline shaft systems for rock, workers and material. Siphumelele 1 consists of one vertical shaft and one decline system. Mining at Siphumelele 1 takes place on the Merensky horizon, with limited quantities of low-grade, surface-rock dump material being processed. The predominant mining layout at the operating shaft is conventional breast stoping with strike pillars. The operating depth for the current workings is between 600 m and 1,350 m below surface.
Siphumelele Mine's life-of-mine (LoM) plan extends to 2050, as a result of the addition of UG2 Reef into the business plan for Siphumelele 1. The current LoM plan consists of a Mineral Resource (exclusive of Ore Reserves) of 15.8 4E million ounces and an Ore Reserve of 6.5 4E million ounces.
KEY ACHIEVEMENTS
- One million fatality-free shifts.
- Increased production and productivity.
OPERATIONAL REVIEW
Siphumelele Mine achieved one million fatality-free shifts during the fourth quarter of 2011. However, the lost-time injury-frequency rate increased by 29% compared with that for 2010, to 2.61.
At 216,000, m2 production was the same as in 2010. Tonnes milled increased by 38% to 1.4 million tonnes through the treatment of low-grade surface-ore sources. The underground 4E built-up head grade, remained unchanged at 5.58 g/tonne, but the increase in surface material volume treated caused the overall grade to decrease to 3.85 g/tonne down 24% on 2010. The increased production from low-grade ore sources resulted in a rise to 96,000 equivalent refined platinum ounces, up 2% on 2010. The immediately available Ore Reserves ended the year on 18.4 months, a drop of 14% compared with 2010. Productivity improved by 4%, to 4.8 m² per operating employee.
Cash on-mine costs rose by 10% to R1.2 billion, owing to increased costs associated both with the transport and concentrating of the low-surface materials and with normal inflationary cost increases. The cash on-mine cost per tonne milled decreased to R827 per tonne milled, down 21% as the result of the low-cost additional volumes. Cash operating expenses (costs after allowing for off-mine smelting and refining activities) per equivalent refined ounce increased by 7% to R13,492 between 2010 and 2011.
CAPITAL EXPENDITURE
Total capital expenditure increased to R187 million in 2011 (R109 million in 2010). Stay-in-business capital expenditure amounted to R144 million (R82 million in 2010), while project capital expenditure was R43 million (R27 million in 2010).
A feasibility study is in progress for the Merensky deepening project at the Siphumelele 1 shaft. The project involves the extension of the current decline clusters between 35 level and 37 level. This will extend the life-of-mine by five years, adding 0.91 million ounces to the plan. The project is scheduled for implementation in the second quarter of 2013.
As part of the Rustenburg UG2 strategy, mining opportunities are being considered for UG2 extraction at Siphumelele. Phase 1 is aimed at exposing the shallow UG2 ore body from 18 level to 24 level. The project involves developing haulages and crosscuts from the current Merensky infrastructure in order to access this ore body.
OUTLOOK
Siphumelele is expected to maintain its production of equivalent refined platinum ounces in 2012.
