Eland mine complex, South Africa – update
Name of the Project
Eland mine complex.
Location
Brits, in South Africa’s North West province.
Project Owner/s
Independent integrated platinum group metal producer Northam Platinum.
Project Description
Northam acquired the Eland mine in 2017. The mine has been on care and maintenance since 2015.
A feasibility study to restart upper group two (UG2) mining as a hybrid of conventional breast stoping, with conveyor ore transport, was concluded in 2019, after which the development and stoping ramp-up of the Kukama shaft, in parallel with processing operations, was approved. Ramp-up to steady-state production levels of 150 000 oz platinum, palladium, rhodium and gold (4E) is likely to take six years.
Fixed and mobile underground equipment was refurbished and recommissioned, and a revised underground mining layout was developed.
The mine complex includes surface and underground infrastructure, including a 250 000 t/m 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 UG2 reef and are fully equipped. Eland’s two mining rights have a resource currently estimated at 19.3-million ounces of 4E, at an average in situ grade of 3.95 g/t.
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 of 4E by 2025 and steady-state production of 150 000 oz/y 4E is forecast from 2029.
Latest Developments
Decline development at the project has progressed.
The decline system was reconfigured during the 2020 financial year, 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 mine water handling systems, were extended to the bottom of the mine.
During the half year to December 31, 2020, decline development of 746 m was achieved –134 m above plan. Strike tunnel development in the upper western portion of the mine has advanced, a reef raise has been established and stoping is continuing 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 before full mine stoping ramp-up.
Tunnel development of an additional three strike drives started in January 2021, as part of the re-initiated mine ramp-up. An agreement to acquire 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 west of Kukama, and strike tunnel development is partly aimed at connecting with the Maroelabult decline. This will enhance the provision of underground services and build up mineable reserves.
Despite capital trimming, the decision to recommission the secondary concentrator circuit has enabled the mine to generate revenue, which is being used to continue reserve build-up. Commissioning of the primary circuit has started and will allow for the treatment of run-of-mine ore from the 2022 financial year. Mine planning, incorporating Maroelabult, is being progressed and will reduce lead time to steady state, Northam has said.
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.
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