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| Potgietersrust Platinums Limited (PPRust) (managed – 100% owned) |
| SAFETY |
| There were zero fatal incidents at Potgietersrust in
2007. The mine reduced the LTIFR by 69% from 0.26
in 2006 to 0.08 in 2007. The number of lost-time
injuries reduced from six to two. |
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| PRODUCTION |
| PPRust had a difficult year with the North pit
encountering a deeper zone of weathering than
originally envisaged at the time of the project studies.
This placed pressure on the availability of quality
reserves and consequently a lower grade of ore was
milled during the year. Complexities associated with ore
mixes from the existing Sandsloot and Zwartfontein
pits, causing grade and recovery volatility, also
contributed to the lower grade tonnes processed. The
4E built-up head grades for the year was 3.49 g/t
compared with 3.90 g/t recorded for 2006. Tonnes
milled for the year declined by 9% to 4,187,000. As a
result of the increase in topsoil removal at the North
pit and increased waste mining associated with the
weathered areas, tonnes mined increased to
87,727,000 compared to 66,136,000 in 2006. The
lower-grade material and fewer ore tonnes processed
resulted in the production of equivalent refined ounces
decreasing by 15% or 27,800 ounces to 163,500 ounces
for 2007. |
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| COSTS |
| Total cash on-mine costs for 2007 increased by 24% or
R226 million to R1.2 billion. Cash on-mine cost per
equivalent refined platinum ounce increased by 45% to
R7,233 per ounce due to higher absolute costs, lower production volumes and lower grades. The lower
production volumes had a similar impact on the cash
on-mine cost per tonne milled, which increased by 36%
to R282 per tonne. Significant inflationary pressures,
exacerbated by tyre, diesel and labour costs above
inflation were the main factors impacting on the yearon-
year absolute cost increase. |
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| Ted Nohajer |
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| CAPITAL EXPENDITURE |
| Total capital expenditure at PPRust for 2007 was
R4.1 billion, an increase of 141% from 2006. The major
increase in 2007 was the North pit project and its
associated infrastructure. Other capital projects included
the relocation of the Motlhotlo village (R225 million in
2007). Expansion capital increased to R3.5 billion in
2007, a 238% increase from 2006, while ongoing capital
decreased by 6% to R0.6 billion. |
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| OUTLOOK |
| Production from the North pit is set to increase as
more fresh ore is exposed, which is expected to result
in doubling the tonnes milled in 2008, albeit at lower
grades. |
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| Projects |
| PPRust North project |
In 2005, the Board approved the PPRust
replacement project, including the continuation of
operations at PPRust post the identified closure
dates of both the Sandsloot and Zwartfontein open
pits. The stated decision included the requirement of
relocating the Ga-Puka and Ga-Sekhaolelo villages,
commonly referred to as the Motlhotlo Village.
Construction of the new Motlhotlo Village, some five
kilometres from the existing Ga-Puka and Ga-
Sekhaolelo villages progressed satisfactorily in 2007.
Phased physical relocation began in June 2007. Some
539 families were relocated by year end.
In 2006, the Board approved the PPRust North
expansion project which will expand milling capacity by
600,000 tonnes per month, in addition to the 385,000
tonnes per month milled by the existing PPRust
facility.
The Polokwane water supply scheme, including seven
development and upgrading sub-projects, continued in
2007. Agreement has been reached on the scope
associated with the Olifantspoort water treatment
facility project and this is scheduled to begin in the first
quarter of 2008.
Development of the mine is ahead of schedule and will
be complete in 2008.
Construction of the PPRust North concentrator facility
is nearing completion. Commissioning has started with
the first ore expected to be processed in the first half
of 2008.
Procurement of heavy mining equipment is progressing
according to schedule. To date, three hydraulic shovels
and ten mining rear dump trucks have been
commissioned. A further three rear dump trucks and
two hydraulic shovels will be commissioned in the
quarter quarter of 2008. |
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