Name of the Project
Booysendal South platinum mine project.

Location
The project is located about 35 km west of Mashishing, straddling the border of Limpopo and Mpumalanga, in South Africa.

Client
Northam Platinum.

Project Description
Booysendal South incorporates the infrastructure of Aquarius Platinum’s former Everest mine, which Northam acquired in June 2015.

The acquisition of Everest included a 250 000 t/m concentrator, underground access and equipment, tailings storage, workshops and offices, as well as existing infrastructure such as power and water supplies.

The proposed project has been divided into two upper group two (UG2), bord-and-pillar mining modules – Booysendal South 1 and Booysendal South 2 – which will be accessed from one portal complex, reducing its environmental impact and capital requirements; and a Merensky reef mine similar to that at Booysendal North.

Northam is installing an aerial wheel-on-rope conveyor system, known as the South aerial rope conveyor system, or Ropecon, to deliver ore from the central portal complex to a concentrator 4.9 km away. The conveyor will have a capacity of about 444 000 t/m.
 

The first phase comprises 12 tower structures, which support the conveyor. The construction of the second phase comprises seven tower support structures.

Booysendal South mine will sustain production at 250 000 oz to  300 000 oz of refined platinum, palladium, rhodium and gold, or 4E PGMs, for more than 25 years.

Potential Job Creation
One-thousand jobs were created in 2017 and a further 1 000 jobs will be created in 2018. Further, 100 jobs were created in 2017 and a further 100 jobs will be created in 2018 by Booysendal South’s metallurgical operations.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project has a capital allocation of R4.2-billion over a six-year period.

Duration
The project is expected to reach steady state in 2022.

Latest Developments
R1.5-billion was spent on the development of Booysendal South in the financial year ended June 30, 2018. In total, R1.9-billion has now been spent on the project.

Most of this capital expenditure applies to infrastructure expenditure, including Ropecon, the South/North connection road, the Central mine boxcut and decline development, and the refurbishment and start-up of the South mine concentrator.

The establishment of infrastructure has been progressing apace, with the completion of a 12 km access road, a bridge over the Dwarsrivier, and equipment installation on surface and underground.

The central boxcut and earthworks are complete and work on the shaft head infrastructure is on track.

All seven adits have intersected reef.

The development for Phase 1 has been completed and by year-end, a surface stockpile of 71 000 UG2 tonnes had been accumulated. This stockpile needs to reach the level of 150 000 t ahead of the rope conveyor commissioning.

The installation of Ropecon, linking the central UG2 complex with the South concentrator, is progressing well. By the end of 2017, all the towers had been erected and all ropes installed and tensioned. Commissioning is expected in December 2018, ahead of schedule.

In a further development, a new aerial rope conveyor system has been approved to transport excess production at the North mine to the South concentrator. The construction of the North aerial rope conveyor system is expected to start early in the 2019 financial year, after environmental approval is obtained.

Key Contracts and Suppliers
Doppelmayr Transport Technology (Ropecon) and Murray & Roberts Cementation (Phase 1 contract for the establishment of the Booysendal South central complex).

On Budget and on Time?
The project is ongoing.

Contact Details for Project Information
Northam Platinum media and investor relations, R&A Strategic Communications, tel +27 11 880 3924.