Name of the Project
Klipfontein platinum group metals (PGMs) project.
Location
The Kroondal operations, in the North West, South Africa.
Project Owner/s
The project will be developed according to an existing pool-and-share agreement between multinational precious metals mining company Sibanye-Stillwater (50%) and leading primary producer of PGMs Anglo American Platinum (50%).
Project Description
Klipfontein is a small, robust opencast PGM project, which will be developed in terms of the existing agreement with Anglo American Platinum at the Kroondal operations.
Envisaged is a shallow openpit operation, which will mine upper group two reef to a depth of 45 m and produce about 40 000 oz/y of platinum, palladium, rhodium and gold over a three-year life-of-mine.
Ore will be mined by a contractor and treated at the K2 concentrator at the Kroondal mine.
Potential Job Creation
Klipfontein will create 124 jobs.
Net Present Value/Internal Rate of Return
The project has an estimated net present value (NPV), at a 15% discount rate, of R738-million and an internal rate of return (IRR) of 70% using conservative project price assumptions.
The NPV increases to R2-billion, with an IRR of 110% at current (2021) spot metal prices.
Capital Expenditure
Project capital is estimated at R66-million.
Planned Start/End Date
The project was approved in February 2021.
Latest Developments
The Klipfontein lay-down areas and site establishment were completed in the first quarter of 2021 and the first blast was taken on January 7, 2022.
The project is on track and is ramping up, with full production expected in the second quarter of 2022.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Sibanye-Stillwater senior VP: investor relations James Wellsted, tel +27 10 493 6923 or email ir@sibanyestillwater.com.