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MODERN MINING
February 2014
PLATINUM
T
his expansion initiative leverages
off the success of its ‘older sister’
operation, the Bafokeng Rasimone
Platinum Mine (BRPM), a joint
venture with Anglo American
in which Royal Bafokeng Platinum (RBPlat)
holds two thirds, which has been in produc-
tion since 1998
This has allowed the necessary funding
arrangements to be put in place, with a capital-
raising likely at an opportune time in 2014 or
2015. In the meantime, RBPlat has R2 billion
of funding available – almost half of which is
cash on hand and the other half in an unuti-
lised revolving credit facility.
The impact of the Styldrift project will be
a substantial boost to the company’s fortunes.
Having spent over R2 billion of its total proj-
ect budget of around R10,7 billion by the end
of 2013, Styldrift will double the company’s
production by 2019 after it hits steady state
production levels of 2,8 Mt/a.
In November 2013, RBPlat was able to shave
R750 million off the original R11,4 billion bud-
get by opting for a brownfields solution to its
processing requirements. Jettisoning the idea of
a 230 000 tonnes per month (tpm) standalone
plant and associated upgrades to the BRPM
concentrator (for UG2 blending and treat-
ment), the company will now increase BRPM’s
concentrator capacity by 50 000 tpm – from
200 000 to 250 000 tpm. This will be hiked
another 100 000 tpm by the construction of a
module alongside the existing facility, bringing
total capacity to 350 000 tpm.
RBPlat Chief Executive Steve Phiri said the
decision took into account the pressure that
platinum prices were under, as well as rising
costs in the industry. While all projects need to
be similarly vigilant, Styldrift has probably less
reason than most. The confidence around the
project, enhanced by its location on one of the
last known blocks of shallow Merensky Reef,
is based on the fact that the reef here has the
highest grade outside the long-established oper-
ations of the platinum majors. The measured
Merensky resources (attributable to RBPlat) total
48,49 Mt at a 4E grade of 7,49 g/t for 11,68 Moz.
Indicated resources equate to 39,34 Mt.
The UG2 Reef also shows considerable prom-
ise, with measured resources (attributable to
RBPlat) at 51,6 Mt with an average 4E grade
of 5,31 g/t for 8,82 Moz. The current estimate
of indicated resources here is an impressive
55,98 Mt at similar grades, with a further
27,96 Mt inferred. It is therefore not surpris-
ing that, while the initial investment proposal
considered only the Merensky Reef for exploi-
tation, the plan is now to bring in UG2 at some
stage. For this purpose, a footwall infrastruc-
ture will be developed below the UG2 horizon.
While the UG2 at Styldrift 1 was not part of
the original mine design, the optimisation study
undertaken during the shaft sinking stage of
the project showed that the long term plan pre-
sented the UG2 as a viable future replacement
Royal Bafokeng Platinum’s Styldrift project near Sun City
in North West Province is well on its way to completion,
boasting the shallowest new shaft in the industry with its
mean mining depth of just 661 m below surface.
Modern
Mining
contributor Paul Crankshaw reports on the nearly
R11 billion project, which is now just over a third complete
and running slightly ahead of schedule.
STYLDRIFT
puts on a strong
show for
platinum sector
In November 2013,
RBPlat was able to
shave R750 million
off the original
R11,4 billion budget
by opting for a
brownfields solution
to its processing
requirements.
