Struggling platinum-group metals (PGMs) producer Royal Bafokeng Platinum’s (RBPlat’s) focus during 2016 will be on the enhancement of the ability of Styldrift, in Rustenburg, in the North West, to ramp up beyond 50 000 t/m, despite the volatile plati- num market conditions.

This will be done by continuing with on-reef development to create face flexibility and progressing key infrastructure, namely a 642-level footwall development, decline and ore-pass installation; services shaft equipping; and Settler 1 and Silo 4.

“The development and construction of Ventilation Shaft No 1, Silo 2 and appropriate workshop infrastructure are being advanced during [the second half of] 2015, as this is a prerequisite to delivering about 400 000 t of on-reef development and sustainably meeting the build-up to 50 000 t/m during 2016,” RBPlat explains in its review and production report for the quarter ending September 30.

As of October, four operating teams were undertaking on-reef development at the Styldrift I project and are expected to deliver 40 000 t of ore during the remainder of 2015.

During the quarter, 12 000 t was delivered to the company’s Bafokeng Rasimone Platinum Mine (BRPM) concentrator, also in Rustenburg, from on-reef development.

Construction-related activities and related capital expenditure (capex) at the Styldrift I project were scaled down in the quarter under review, with work expendi- ture aligned to excess cash flows generated from BRPM and revenue generated from on-reef development at Styldrift.

The BRPM concentrator Phase 1 upgrade to 250 000 t/m, which was previously intended to be completed during the third quarter of 2015, has been deferred to the first quarter of 2016, as the existing treatment plant facilities are adequate to treat all ore volumes arising during 2015.

Overcoming Turmoil
RBPlat has terminated major contracts at its R11-billion Styldrift 1 project, but has outlined a plan that could see it hit the ground running with an abundance of mining flexi- bility in an improved platinum market, Mining Weekly reported in November.

In August, RBPlat announced plans to scale back on construction at its Styldrift 1 expansion project, telling investors that a sustained depression in the PGMs market – which is expected to continue over the medium term – was behind the imperative to reduce capex on the project. As such, development funding would be serviced from excess cash flows rather than the miner’s balance sheet.

The miner has subsequently stated that it will develop nearly 7 km of underground infrastructure during 2016, nearly 6 km of which will be on-reef and, thus, able to generate 70% of the R1-billion needed to do the job.

The on-reef development is expected to yield 39 000 oz of plati- num at a basket price averaging R17 500/oz, while the 30% funding shortfall could be provided by surplus cash from BRPM.

But BRPM is not without its challenges, with Business Day reporting in August that RBPlat would stop mining the economically unattractive upper group 2 (UG2) reef at BRPM’s South shaft. RBPlat would instead switch its focus to the more valuable Merensky reef in a newly developed mining area at the complex, CEO Steve Phiri said at the time.

As of August, the Merensky Phase III replacement project at BRPM was still ahead of schedule and below budget.

The Phase III construction capex planned for 2016 was also reduced, with this portionof 2015 capex diverted to 2017, as the project is ahead of schedule at 86% completion against a plan of 77%. As such, the construction scope on 14 and 15 levels has been delayed to 2017, without any impact on the key handover dates of these levels.

The project remains below budget, with expenditure for the quarter amounting to R57.9-million and R936.9-million on the project, as of October.

The Styldrift platinum mine is being developed by the BRPM joint venture (BRPM JV), which is 67%-owned by the mine’s operator, RBPlat, and 33%-owned by Anglo American Platinum.

The construction of the Styldrift project began in 2009 and is expected to produce 5.4-million ounces of platinum during its 27-year life-of-mine. It is estimated it will produce 370 000 oz/y of PGMs, along with 3 600 t/y of nickel and 1 900 t/y of copper.

Styldrift Geology and Reserves

The BRPM JV was established by Royal Bafokeng Holding (RBH) and Anglo American Platinum in 2002 to exploit PGM resources from the Merensky and UG2 reefs on the Boschkoppie, Frischgewaagd and Styldrift farms, in the North West. RBH took over the operational control of BRPM through RBPlat in 2010.

The Styldrift project has, from the beginning, been focused on the exploitation of the shallow Merensky orebody located contigu- ously to the neighbouring BRPM.

The first phase of the Styldrift platinum project included the development of a new shaft complex 5 km away from BRPM’s North shaft, a 230 000-t/m-capacity concentrator plant, a tailings dam and auxiliary ventilation shafts.

The trackless room-and-pillar method of underground mining is employed to mine the thick Merensky resource areas, while the narrow Merensky reef areas are mined using a conventional breast stoping method.

The underground mine is accessed through a twin, concrete-lined vertical shaft system comprising a 10.5-m-diameter main shaft and a 6.5-m-diameter service shaft. The main shaft has a depth of 740 m, while the service shaft is 705 m deep.

ootwall infrastructure was developed 25 m below the Merensky reef horizon to transport ore to the shaft. The shaft system is linked to the up-dip and down-dip on-reef roadway clusters on both the reef horizon and the footwall level.