International engineering company Amec Minproc is able
to design small to medium-sized, fit-for-purpose and cost-effective process plants, which are particularly applicable to projects with a limited life-of-mine and financial capital, says Amec Minproc technical manager Steve Amos.
This is particularly relevant for junior mining companies and platinum projects. He explains that, while there are exceptions, most new platinum studies involve either small projects where capital is difficult to justify, low-grade platinum projects that
require substantial throughput and capital investment, or projects involving deep orebodies that are expensive and challenging to mine.
He explains that the cost effectiveness of its plants is owing to the expertise gained from Amec Minproc’s presence in the goldfields of Western Australia. In South Africa, the company specialises in fit-for-purpose gold plants for mines with lives of five to ten years and, therefore,
limited capital investment.
He explains that the plant footprint is made as compact as possible, with less civil engineering and earthworks, a lower level of automation and shorter pipes and smaller pipe racks in an effort to reduce capital cost. However, the quality of the mechanical equipment, as well as health, safety and environmental considerations,
is not compromised.
An example of one such plant installation is in the ASX-listed Platinum Australia’s (PLA’s) Smokey Hills project, on the eastern limb of South Africa’s Bushveld Complex, in Limpopo. Amec Minproc’s scope of work included the process plant and its related
infrastructure, for which commissioning was finalised in February last year. He believes that the cost of the plant was significantly lower than the industry norm.
Platinum Studies
The company is currently under-
taking a scoping study on minerals exploration and mining
services company Ivanhoe Nickel & Plat-inum’s Platreef project, near Mokopane (Potgietersrus), in Limpopo.
The study is expected to be completed at the end of this year and will then proceed to prefeasibility and feasibility studies. He
estimates that it may take up to three years for construction to take place on the project.
Amec Minproc has also completed three bankable feasibility studies (BFSes) for platinum projects over the past few years, which have since progressed. Amos says that the company could possibly become involved in these projects at a later stage.
The projects include the BFS for PLA’s Kalahari Platinum project, in the North West province, which GRD Minproc was appointed
to undertake, and which comprises eight deposits, namely Crater, Orion, Crux, Vela, Sirius, Serpens North and South, and Mira. GRD Minproc was acquired by international
engineering and project management company Amec, in November last year.
The prefeasibility for the project reportedly indicated that it will produce over one-million ounces of four-element platinum-group metals (PGMs) (platinum, palladium, rhodium and gold) over a nine-year operating life from the openpit mining of four of the eight deposits – Crater, Orion, Crux and Vela.
Amec Minproc also undertook the feasibility study for the Sheba’s Ridge project, in Mpumalanga, for Aim-listed Ridge Mining and top platinum producer Anglo Platinum. The world’s fourth-largest platinum producer, Aquarius Platinum, subsequently acquired Ridge Mining and took over management of the project.
Aquarius Platinum reports that the prefeasibility study expects production of 24 000 t/y of nickel and 390 000 oz/y of platinum-group elements. Amos says that this was an interesting, low-grade project with a few environmental challenges, owing to its proximity to the Loskop dam.
The other BFS completed by Amec Minproc was for a Western Bushveld project owned by Canadian junior Platinum Group Metals.
Meanwhile, Amec Minproc is interested in furthering its involvement in PGMs projects in the country and Amos believes that the relative stability of the platinum price will lead to an increase in platinum projects.
“A year ago, when platinum prices were down, even the big platinum producers were finding it difficult to make a profit and many mines faced the possibility of closing,” he says, adding that the first mine to close tends to send a shockwave across the industry, causing the platinum price to increase again.
In this situation, many projects are put on hold. However, the company has noticed new interest in platinum from several mining companies and some of the shelved projects have resumed, as they seem to be more viable now.
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