Aim- and ASX-listed Sylvania Resources has received approval from the Limpopo Department of Economic Development, Environment and Tourism for the establishment of a new plati-num-group metals (PGMs) tailings facility at its Lannex mine, near Steelpoort, in the eastern Bushveld.

The PGMs miner has been forced to temporarily suspend its Lannex operation, as it awaits the final approvals for the new tailings facility, which will enable the Lannex processing plant to reach full design capacity of 70 000 t/m of feed from dump and run-of-mine resources.

The Lannex plant was commissioned in September last year, but has been operating at only 30% of its nameplate capacity, as a result of constraints on the amount of tailings that come from its current temporary tailings dam.

Sylvania has determined that it is not cost effective to run the plant at only 30% of its design output, as it is incurring an aver-age production cost of about R5 000/oz.

The company expects to start construction on the new dam during the second quarter of this year, but is still awaiting a water use licence from the Department of Water Affairs and final permission from the Department of Mineral Resources.

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