Name of the Project
Far West Gold Recoveries (FWGR) operation.
Location
Gauteng, South Africa.
Project Owner/s
DRDGold’s acquisition of Sibanye-Stillwater’s (Sibanye’s) West Rand Tailings Retreatment Project (WRTRP) assets was finalised on July 31, 2018. Following the successful implementation of the transaction between the two companies, Sibanye owned 38.05% of the issued share capital of DRDGold.
Under the terms of the transaction, entered into in November 2017, Sibanye agreed to exchange selected surface-gold processing assets and tailings storage facilities (TSFs) for shares in DRDGold.
Sibanye also had an option to subscribe for further shares in DRDGold within 24 months at a 10% discount. In January 2020, Sibanye exercised this option, obtaining a 50.1% controlling interest in DRDGold.
Project Description
FWGR is being rolled out in a phased approach.
Phase 1 included early-stage production, involving upgrading the Driefontein 2 (DP2) plant to process tailings from the Driefontein 5 dump at between 400 000 t a month and 600 000 t a month, depositing the residue on the Driefontein 4 tailings dam, which was upgraded to a cyclone deposition dam to cater for the higher throughput.
Phase 2 envisages the construction of a high-volume central processing plant capable of processing between 1.2-million and 2.4-million tonnes a month, the continued use of Driefontein 2 plant at an increased 600 000 t a month, and the development of a new regional TSF capable of receiving up to three million tonnes a month to a capacity of about 800-million tonnes.
In this phase, reclamation will initially be from the Driefontein 3, Libanon and Kloof 1 dumps, and then from the Ventersdorp North and South dumps. The scale of the infrastructure established in this phase will allow for reclamation from other sources in the region. The objective is to clean up the regional landscape by reprocessing tailings that are currently on dolomite, and redeposit the reclaimed material onto a properly designed and managed mega dam, thereby reversing the potential pollution of underground water in the region.
Phase 2 is expected to extend the life of the operation to 20 years and beyond, and good progress has been made in advancing this phase, with DRDGold well into the planning and permit application processes.
As an alternative to Phase 2, or if Phase 2 is delayed, Phase 1 can be extended by extending deposition onto the Driefontein 4 tailings dam, owing to the good cyclone splits being achieved at the tailings dam. Envisaged is the treatment of the remaining tonnes from Driefontein 5 and then processing material from Driefontein 3.
Potential Job Creation
Since its inception, FWGR has secured employment for more than 100 employees and is committed to its environmental, social and governance mandate, as well as social upliftment programmes, in the far West Rand area of operations. With the implementation of Phase 2 and extended life-of-mine, more opportunities are expected to create DRDGold’s value creation narrative.
Capital Expenditure
DRDGold invested R330-million of capital in Phase 1.
The cost of Phase 2 will depend on whether the company chooses to build a second plant and TSF or expand the existing facilities.
Planned Start/End Date
Phase 1 commercial production began within eight months of the acquisition, on April 1, 2019, and made its maiden full 12-month contribution to DRDGold’s financial results in the 2020 financial year.
Construction of Phase 2 is planned to be completed by 2024/5, provided the requisite amendments to existing regulatory approvals are obtained, the gold market remains favourable and an investment climate prevails that is conducive to long-term investment on this scale.
Latest Developments
The definitive feasibility study on FWGR Phase 2 was completed in the 2021 financial year.
DRDGold intends to investigate the feasibility of a design as extensive and ambitious as the footprint, accessible resources and available services will allow for, and then incrementally implementing the project in keeping with its capacity and risk appetite.
Key to Phase 2 is a regional tailings facility designed to receive more than 800-million tonnes of displaced mine waste over its operating life span.
DRDGold has explained that although this is much more than the company’s 250-million-tonne resource, it has been designed to receive most of the tailings deposited in the region, most of which are built over dolomitic structures.
The Department of Water and Sanitation has, however, rejected the new design proposed for the regional tailings storage facility (TSF) to built be without a liner.
DRDGold has said that it is “reluctant to build a TSF of this magnitude on a composite liner, for reasons based . . . on safety and efficiency”, and has started a regulatory process to amend the licence conditions of the existing design.
Until this has been resolved, it is investigating the feasibility of an interim phase to, at considerably reduced capital expenditure, extend and consolidate existing deposition capacity and upgrade its existing Driefontein 2 plant to one-million tonnes a month, doubling its current volume capacity.
Key contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
R&A Strategic Communications on behalf of DRDGold Jane Kamau, tel +27 11 880 3924 or email jane@rasc.co.za.