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Platinum junior to produce 400 000 oz by 2024

22nd August 2014

By: Ilan Solomons

Creamer Media Staff Writer

  

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As part of its long-term vision, triple-listed platinum junior Atlatsa Resources aims to achieve steady-state production of 400 000 oz/y of platinum, palladium, rhodium and gold platinum-group metals (4E PGM) by 2024 at its Bokoni opencast and underground mine, in Limpopo, says Atlatsa Resources investor relations head Prudence Lebina.

She tells Mining Weekly that Atlatsa hopes to expand the mine’s current production to 250 000 oz/y of 4E PGM by 2019 in the medium term.

In 2013, Bokoni mine produced 170 295 oz of 4E PGM, with 112 troy ounces sourced from the Merensky reef and 58 troy ounces from the upper group two (UG2) reef, which Lebina says is in line with the company’s expectations.

Bokoni mine has a total resource base of about 154-million ounces of PGMs, of which 80-million ounces are measured and indicated.

Lebina adds that, while the mine’s current reserve life is estimated at 37 years, Atlatsa believes that life-of-mine is more than 100 years at the current extraction rate.

Meanwhile, she cites the need to improve productivity levels as a major challenge currently facing the company, largely as a result of pothole distribution in the Merensky reef, which can lead to ground instabilities, particularly in the hanging wall, which could pose a serious safety hazard for mineworkers.

“We are mitigating this by undertaking additional infrastructure developments on site by strengthening existing support structures on the mine.”

Lebina notes, however, that the main road to Polokwane, which assists in delivering material to the mine and transporting concentrate to smelters, is in fairly good condition.

“Power infrastructure is also adequate, though other infrastructure, such as surrounding roads and railway lines, could be improved,” she says, adding that Atlatsa has assisted in maintaining secondary roads and waste disposal facilities in the local community.

Further, she highlights that the Bokoni mine is changing its hand-held drilling equipment from electric drills to hydropower drills at the Brakfontein shaft – a project scheduled for completion by year-end.

Upping Output
Atlatsa Resources recorded an 18.8% year-on-year increase in Bokoni mine’s first-quarter (Q1) production, from 36 043 oz of 4E PGMs in Q1 2013 to 42 820 oz of 4E PGMs in Q1 2014.

Lebina attributes this increase to the company’s new Merensky Klipfontein opencast project, which started operating in the second quarter of 2013, contributing 5 689 oz of 4E PGMs during Q1 2014.

Atlatsa is ramping up its two underground projects – the Brakfontein Merensky and the Middelpunt Hill UG2 shaft complexes.

“Both are ongoing and have started to meet planned production ramp-up targets,” she states.

Community Upliftment
The Bokoni mine employs about 3 600 mine-workers on a full-time basis and has about 2 200 contract employees, sourced largely from the local Sekhukhuneland district community.

“We have also increased community involve- ment in the mine through the develop-ment of small, medium-sized and microenterprises, corporate social responsibility projects and employee well-ness programmes,” Lebina highlights.

She notes that the mine stimulates local economic development by procuring pro-ducts and services from community-based enterprises, such as the Fanang Diatla bakery, the Khomanchas slate quarry and civil works company Mogorishane.

Environmental Matters
Atlatsa undertook an external assessment on the Bokoni mine, which was concluded in September last year, to determine the environmental closure liability.

As at March 31, the total environmental rehabilitation liability – which is the company’s provision for environmental rehabilitation during the life of the mine and at closure – for the mine, in current monetary terms, was estimated at $11.7-million.

“Atlatsa Resources makes yearly contributions to a dedicated trust fund to cover the estimated cost of rehabilitation during and at the end of Bokoni’s life-of-mine,” Lebina points out.

Health and Safety Focus
Lebina emphasises that health and safety is para-mount to Atlatsa Resources’ operations and a key performance area for company management.

In 2013, the company’s lost-time-injury frequency rate (LTIFR) was 0.42 – a 55% year-on-year improvement, compared with the 0.97 LTIFR in 2012.

“The Bokoni mine has extensive training pro-grammes . . . to tackle behavioural safety issues, and in-house review programmes to assess workplace conditions and areas that do not meet in-house standards,” Lebina concludes.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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