Name of the Project
Eland mine complex.

Location
Brits, in South Africa’s North West province.

Project Owner/s
Northam Platinum.

Project Description
Northam acquired the Eland mine from Glencore for R175-million in 2017.

It comprises two decline systems accessing three underground mining levels, together with surface support infrastructure. This includes a concentrator with a nameplate capacity of 250 000 t a month, a chrome spiral recovery plant, a tailings storage facility and a mining fleet of more than 100 vehicles. Eland hosts a shallow, upper group two (UG2) orebody containing 19.3-million ounces of platinum, palladium rhodium and gold, or 4E, of which rhodium comprises two-million ounces, at an average in situ grade of 3.95 g/t.

The mine had been on care and maintenance since 2015. Operations were restarted in 2019, following the conclusion of a feasibility study. This comprised the development of the underground mine on a hybrid array of conventional breast stoping and mechanised ore transport using hydropower technology imported from Northam’s Zondereinde mine. Ramp-up to steady-state production levels of 180 000 oz/y of 4E is scheduled to take six years.

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.

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 R4.3-billion over a five-year period. To date, R1.1-billion has been spent. The project will be fully funded from Northam’s resources.

Planned Start/End Date
Mine development started in 2020. Production is forecast to reach 100 000 oz/y of 4E in the 2024 financial year and increase to 180 000 oz by the 2028 financial year.

Latest developments
Decline and strike drive development are progressing well.

Stoping build-up at the mine was delayed as part of Northam’s 2020 capital trimming Covid-19 response. However, Northam has continued to open up reserves through the development of the declines and strike drives.

The full capital programme was reinstated in September 2020 and Northam’s estimated total capital for this mine build includes a steepened ramp-up and expanded steady-state profile of 180 000 oz/y of 4E in concentrate by 2028.

The decline system was reconfigured during 2020, such that the three decline barrels are located in stable norite rock of the immediate footwall to the UG2 reef. In addition, decline conveyors and tips, together with mine-water handling systems, have been extended to the bottom of the mine.

During the year ended June 30, 2021, decline development of 1 279 m was achieved. This is 118 m above plan and has opened up six strike drives. The mine requires 11 strikes for steady-state production.

Development of two western strike drives started during the first half of the year, while an additional two strikes on the east side of the mine were started during the second half.

Development of additional strikes will start early in the 2022 financial year.

Stoping continued on the UG2 reef in the upper western portion of the mine as part of a planned early mining demonstration.

More than 3 800 m2 of stoping to date have allowed for the optimisation of in-stope practices and ore handling systems.

An agreement to acquire the Maroelabult mine from Barplats Mines, a subsidiary of Eastern Platinum, was entered into during the second half of the 2020 financial year.

Maroelabult is situated immediately west of Kukama, and western strike development is partly aimed at connecting with the Maroelabult decline. This will enhance the provision of underground services, as well as the build-up of mineable reserve.

An application for the transfer of the mining right has been submitted to the Department of Mineral Resources and Energy and is in progress.

The decision to recommission the secondary concentrator circuit has enabled the mine to generate revenue, which is being used to offset capital expenditure.

Commissioning of the primary circuit has started and will allow for the treatment of run-of-mine ore during the next financial year.

Mine planning, incorporating Maroelabult, has been completed and indicates a reduced lead time to steady state. This study has also included planning for openpit UG2 mining in the east of the property. This has led to a decision to start mining. A contract has been awarded to a local company with sufficient experience.

Preparatory work is being progressed to start mining at 20 000 t a month in early 2022.

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.