Name and Location
Platreef platinum-group elements, nickel, copper and gold mine, Limpopo, South Africa.

Client
Ivanhoe Mines owns 64% of the Platreef project through its subsidiary, Ivanplats, and is managing all mine development work. The South African beneficiaries of the approved broad-based, black economic empowerment structure have a 26% stake in the project and the remaining 10% is owned by a Japanese consortium of ITOCHU Corporation; Japan Oil, Gas and Metals National Corporation; ITC Platinum Development, an ITOCHU affiliate; and Japan Gas Corporation.

Project Description
The Platreef project is a Tier 1 discovery, which contains the Flatreef deposit, located on the northern limb of South Africa’s Bushveld Igneous Complex, the world’s premier platinum-producing region. Ivanhoe has declared an initial probable mineral reserve of 15.5-million ounces of platinum, palladium, rhodium and gold. The mineral reserve is expected to support a 31-year mine life at a steady-state production rate of four-million tonnes a year.

An independent prefeasibility study (PFS) proposes the development of the mine in three phases.

The first phase involves the development of a large, mechanised, underground mine with an initial four-million-tonne-a-year concentrator and associated infrastructure to establish an operating platform to support future expansions.

The second phase will double production to eight-million tonnes a year.

The third phase involves the expansion of the mine to a steady state of 12-million tonnes a year, making it among the largest platinum group metals mines in the world.

Mining zones in the current Platreef mine plan occur at depths ranging from about 700 m to 1 200 m below surface.

Access to the mine will be through four vertical shafts. Shaft No 2 will have the main personnel, material and ore-handling system, while Shaft No 1, 3 and 4 are designated ventilation shafts. Shaft No 1 is under development and will be used for initial access, bulk-sample collection and early underground development.

Mining will be performed using highly productive mechanised methods, including long-hole stoping and drift-and-fill mining. The ore will be hauled from the stopes to the bottom of Shaft No 2, where it will be crushed and hoisted to surface.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value at an 8% discount rate of $972-million, and an after-tax internal rate of return of 13%, with a project payback of seven years.

Value
Preproduction capital is estimated at $1.17-billion, including $114-million in contingencies.

Duration
According to the previously released preliminary economic assessment, Phase 1, which will establish an operating platform to support the start of production at a nominal plant capacity of four-million tonnes a year is expected by 2020.
Phase 2, which includes a ramp-up to a plant capacity of eight-million tonnes a year, is expected by 2024. Phase 3, to a steady-state plant capacity of 12-million tonnes a year, is expected by 2028.

Latest Developments
Ivanhoe has retained Australia-based Whittle Consulting to conduct an optimisation study based on the Platreef PFS.
The work is progressing and recommendations from the study are intended to provide guidance for the feasibility study and subsequent expansion phases.

The development work at Platreef in 2015 will focus on the Shaft No 1 sinking programme, which is expected to be covered by existing dedicated working capital. The funds were provided by an investment of $280-million made by the Japanese consortium, which holds a 10% interest in the project, in 2011.

As at December 31, 2014, $109-million remained available for development work at Platreef. The cumulative investment by Ivanhoe on the Platreef project to date total about $241-million.

Key Contracts and Suppliers
Whittle Consulting (optimisation study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ivanhoe Mines (South Africa), Jeremy Michaels, tel +27 11 088 4300 or jeremy.michaels@ivanplats.com.
Whittle Consulting, tel +61 3 9898 1755, fax +61 3 9898 1855 or email info@whittleconsulting.com.au.