Kroondal Platinum Mine - Kroondal Block

 mine, platinum mine/processing

This is the Kroondal Block (eastern operations) of the Kroondal Platinum Mine, the western being the Townlands Block, and is part of the Rustenburg Complex of mines.

Location: Approximately 120 kilometres north-west of Johannesburg, on the western limb of the world-renowned Bushveld Complex, in North West Province, South Africa, and immediately up-dip of the Rustenburg Mine (RPM) of Anglo Platinum

Ownership: 50:50 pool and share agreement (P&SA1) btween AQPSA and Anglo Platinum

Comprises: Underground mining to a depth of 400 metres via four decline sections – the Kopaneng (formerly Central), Simunye (formerly East), Bambanani (formerly No. 3) and Kwezi (formerly K5) shafts, and two concentrator plants with a combined capacity of 570,000 tonnes

Management: Dedicated AQPSA management team

Safety: No fatalities in FY 2010 and the disabling injury frequency rate improved to 0.57 per 200,000 hours worked


Production:
Total production of 408,570 PGM ounces in FY2010

Production attributable to Aquarius of 204,285 PGM ounces
(48% of group attributable production)

Resources and Reserves: Total attributable mineral resources of 3.44 million 4E ounces after application of geological losses

Total attributable mineral reserves of 2.52 million 4E ounces

Refining: Offtake agreement with Anglo Platinum

Number of Employees: As at end June 2010, 4,530 employees including 4,508 contractors



About Kroondal

Conceived in 1996, Kroondal Platinum Mine – Aquarius Platinum's first and flagship operation – commenced production in August 1999.

In early 2003, Aquarius entered into a P&SA with Anglo Platinum, whereby the two companies share revenues, costs and capital. In terms of this agreement, the Anglo Platinum reserves adjacent to Kroondal were incorporated into the Kroondal mine plan. More recently in 2010, following the conclusion of the Firstplats transaction and the inclusion of its assets in the P&SA2 with Marikana, Kroondal acquired additional resource and reserve ounces from Anglo Platinum.

During the year, Kroondal also gained access to some of Siphumele's 2 and 3 reserves following the conclusion of a tribute agreement with RPM.

The capital-intensive small-mine concept developed at Kroondal revolutionised the South African PGM industry. Essentially, the concept incorporates the use of key contractors, highly mechanised mining operations and the outsourcing of high-cost, high-risk smelting and refining operations. As a result, productivity levels at Kroondal rank among the highest in the industry.

Geology

Kroondal mines the UG2 Reef contained in the Kroondal and Townlands blocks. The UG2 Reef outcrops on the Kroondal property and dips to the north at approximately 9 degrees. This orebody comprises two mineralised seams – the Main and Leader seams – which are separated by a one-metre pyroxenite zone commonly known as the parting.

Production

Volumes mined for the financial year 2010 totalled 6.2 million tonnes, a decrease of 4% on the previous year. This decrease in ore production was attributable in large part to the unprotected industrial action embarked on by the employees of the underground mining contractor, Murray & Roberts Cementation (MRC), on three of the four shafts at Kroondal in the first quarter of the year.

The strike resulted in the mass dismissal of the existing workforce and the recruitment of new employeees who then had to undergo induction and training procedures, which further delayed the resumption of mining operations. Given the consequent fall-off in volumes mined following the strike, the stockpile was used to supplement tonnes fed to the mills. As a result of the depletion of the stockpile, insufficient tonnes were then available to run the plant over the Christmas and Easter holiday periods. The stockpile was at 56,000 tonnes at year-end (end FY2009: 15,000 tonnes).

The re-establishment of relationships with the unions and employees proved to be one of the year"s biggest challenges. Despite these problems, ore reserve creation exceeded expectations by 25%, with 10,655 metres of development achieved for the year. The average head grade mined improved fractionally to 2.59g/t and recoveries were maintained at 79%.

Total PGM production for the year was 408,570 ounces of which 204,285 ounces were attributable, a decrease of 3%. Kroondal"s production was equivalent to 45% of group production for the year. To ensure operational and equipment synergies, MRC has been contracted to undertake all underground mining at Kroondal and thus operates at all the shafts. The transfer of the contract for the Kwezi shaft to MRC produced positive operational benefits in the second half of the year. The ramp-up at Kwezi is proceeding well with record volumes being mined of around 980,000 tonnes in total for the year.

Reference for information:
www.aquariusplatinum.com/default.aspx?MenuID=20

www.angloplatinum.com/business/operations/kroondal.asp

www.aquariusplatinum.com/galleryimages/html/annual_repo...

www.mining-technology.com/contractors/project/murray_ro...