Steve Phiri
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – January 1 to March 31 has proved a solid three months for Royal Bafokeng Platinum (RBPlat).
The Johannesburg Stock Exchange-listed platinum mining company, controlled by the 100 000-strong Bafokeng community, used operational flexibility, stability and strategy to put the headline-per-share losses it suffered in 2015 firmly behind it.
Safety improvement was marked. In sharp contrast to the five fatalities in 2015, RPPlat achieved a fatality-free quarter and reported a 58% improvement in its serious injury frequency rate and 48% improvement in lost time injury frequency rate.
The company, under CEO Steve Phiri, produced 18% more ounces at 3% less cost.
Nine per cent more tonnage was concentrated, 12% more tonnage was milled and a 4%-better head grade was achieved, which lifted production to 265 000 oz of platinum, palladium, rhodium and gold ounces at a cost of R15 718/oz.
Capital expenditure (capex) was more than halved by curtailing construction at the Styldrift I growth project, deferring construction at the Bafokeng Rasimone Platinum Mine’s (BRPM’s) Phase III replacement project and keeping a tight rein on stay-in-business capex outlays.
Styldrift I mining and infrastructure construction allowed to go ahead included the completion of the metallurgical circuit upgrade at BRPM’s 250 000 t/m concentrator; on-reef lateral development on 600 level to establish workshops; preparatory activities to support development and raise-boring on 642 and 708 levels to establish rock and water handling infrastructure; the construction of a second silo and advanced work to facilitate a start on the equipping of the services shaft in the third quarter of this year.
Capital totalling R185-million was spent in the quarter, bringing total Styldrift I capex to date to R5.66-billion. Total forecast 2016 capex for the project remains at R1-billion.
Continuing to advance is the extension to BRPM Phase III’s north shaft decline access infrastructure and associated reef infrastructure from level 10 to the mine boundary at level 15.
BRPM Phase III project capex for the quarter was R31.2-million, bringing the total project expenditure to date to R1.02-billion.
Earlier this year, RBPlat attributed its 2015 headline loss a share of 83c to depressed market conditions that were aggravated by five fatalities and ongoing work stoppages.
Lower production also contributed to a 19% year-on-year revenue decrease to R3.04-billion in 2015.
While RBPlat achieved successful commissioning of the Styldrift 1 main shaft last year, it suspended all major contracts at the project to conserve cash, which will delay ramp-up by 12 months.
Steady-state production of 230 000 t/m will now only be achieved in the first quarter of 2020.