Modikwa Platinum Mine
(non-managed – 50:50 joint venture with ARM Mining
Consortium Limited) |
| SAFETY |
| Modikwa is proud to report zero fatalities for 2007
compared to one in 2006. Disappointingly, the lost-time
injury frequency rate increased marginally from 1.44 to
1.45. The number of lost-time injuries was 115
compared with 117 in the prior year. |
|
|
| PRODUCTION |
| Modikwa production was negatively impacted by a
month of labour unrest at the start of the year. Once
resolved, the mine did not return to full continuous
operations for the first half of the year. Consequently,
equivalent refined platinum ounces declined by 13% to
117,700 ounces. The immediately available ore reserves
increased during the year to 15.6 months at year end,
an 8% increase. The 4E built-up head grade decreased
marginally from 4.43 g/t to 4.36 g/t principally due to
the addition of lower-grade Merensky trial mining ore
which comprised 4% of total output. |
| |
| COSTS |
Anglo Platinum's share of cash on-mine costs increased
by 13% or R71 million to R629 million due to inflation
and increased labour costs following agreements with
unions and associations on conditions of service. The
mine's mechanised sections also incurred above-inflation
cost increases on tyres and fuel.
The cash on-mine cost per tonne milled at R562 was 27% higher than 2006, while cash on-mine costs per
platinum ounce increased by 29% to R10,690. |
| |
 |
| Sean O’Connor |
|
| |
| CAPITAL EXPENDITURE |
| Anglo Platinum's share of capital expenditure increased
by 40% to R129 million from R92 million in 2006.
Capital expenditure was incurred primarily on trackless
fleet replacement and second phase development. |
| |
| OUTLOOK |
| With wage agreements in place for the year ahead,
Modikwa is expected to increase production of
equivalent platinum ounces in 2008. |
| |
|
| |
|
| |
| Projects |
| Modikwa Joint Venture with ARM
Mining Consortium Limited
(ARM) |
The extended pre-feasibility study to
replace phase 1 mining areas was
completed in the second quarter of 2007.
The preferred option to be developed
further during the feasibility study includes
deepening North and South shafts and a
gathering decline system south of South shaft,
to maintain current planned production of 240,000
tonnes per month. The feasibility study is under way,
with the goal of optimising the preferred mine plan in
the pre-feasibility study to create maximum shareholder
value. The feasibility study is expected to be completed
by the fourth quarter of 2008.
Additional interim funding was approved by both
partners in October 2007 to continue deepening
North shaft, equipping 5 and 6 levels at this shaft to
make these levels fully operational, and to start
deepening South shaft to 6 level while the full feasibility
study is being completed. |
| |
|
|
