Name of the Project
Eland mine complex.

Location
The project is located in Brits, in South Africa’s North West province.

Project Owner/s
Northam Platinum.

Project Description
The Kukama project will form the production base for the broader Eland complex.

The Eland mine was put on care and maintenance in 2015 and Northam continued to manage it awhile undertaking a feasibility study for the Kukama shaft.

The mine complex includes surface and underground infrastructure, including a 250 000 t a month concentrator, a chrome spiral recovery plant, a tailings storage facility, two decline systems and surface support infrastructure, as well as a mining fleet of more than 100 vehicles.

Two decline systems – Kukama and Nyala – access three mining levels on the upper group two (UG2) reef and are fully equipped. Eland’s two mining rights have a resource currently estimated at 19.3-million ounces of platinum, palladium, rhodium and gold (4E), at an average in situ grade of 3.95 g/t.

A feasibility study on the Kukuma project – as a hybrid of conventional breast stoping and conveyor ore transport – was concluded in the 2019 financial year, with a six-year ramp-up to steady-state production of 150 000 oz/y 4E envisaged.

The reprocessing of surface ore through the recommissioned secondary circuit of the concentrator, producing platinum group metals and chrome concentrates, is being undertaken in parallel with underground mine development.

The project has a life-of-mine of more than 30 years.

Potential Job Creation
At steady state the mine will provide direct, meaningful, long-term employment for more than 2 500 people.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Capital expenditure is estimated at R2.2-billion over a five-year period. The project will be fully funded from Northam’s resources.

Planned Start/End Date
Conversion of the Kukama decline shaft into a footwall array will start in the 2020 financial year, along with limited early stoping.

Strike development and stoping build-up is scheduled to start in the 2021 financial year.

Production is forecast to reach 100 000 oz/y 4E by 2025 and steady-state production of 150 000 oz/y 4E is forecast from 2029.

Latest Developments
In the 2020 financial year decline development at the project progressed.

The decline system has been reconfigured, with the three decline barrels now located in stable norite rock of the immediate footwall to the UG2 reef.

In addition, decline conveyors and tips, together with water handling systems, have been extended to the bottom of the mine.

Decline development of 1 093 m was achieved. This is 138 m below plan, owing to the Covid-19 lockdown stoppages.

Strike tunnel development in the upper western portion of the mine has progressed, a reef raise was developed and stoping began on the UG2 reef as part of a planned early mining demonstration. This is designed to test and refine blasting, support and ore handling systems ahead of full mine stoping ramp-up.

An agreement to buy the Maroelabult section of the Crocodile River Mine from Barplats Mines, a subsidiary of Eastern Platinum, was entered into during the year. The Maroelabult section is situated west of Kukama and strike development is in part aimed at connecting with the Maroelabult decline. This will enhance the provision of underground services, as well as the build-up of mineable mineral reserves.

The trialling of a mobile tunnel borer was undertaken in the 2020 financial year to test its suitability for advancing the decline system. The trial was successfully concluded and the borer was contracted to develop one of the decline barrels, starting in January 2020.

Capital cutbacks following the onset of Covid-19 led to the decision to suspend mining build-up at the Kukama shaft for 12 months. Decline development will continue, but at a reduced rate. As a result of this, the mobile tunnel borer contract was terminated and the machine was removed from the mine.

Despite the setback of capital cutbacks, underground tunnel development will continue.

The decision to recommission the secondary concentrator circuit has enabled the mine to generate revenue, which is being used to fund this programme.

Mine planning, incorporating Maroelabult, is progressing and this will reduce lead time to steady-state production.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
R&A Strategic Communications on behalf of Northam Platinum, tel +27 11 880 3924 or email northam@rasc.co.za.