Name of the Project
Eland mine complex.

Location
Brits, in South Africa’s North West province.

Project Owner/s
Northam Platinum Limited.

Project Description
Northam acquired the Eland mine for R175 million in 2017. The mine had been on care and maintenance since 2015.

A feasibility study to restart upper group two (UG2) mining as a hybrid of conventional breast stoping, with conveyor ore transport, was concluded in 2019, after which the development and stoping ramp-up of the Kukama shaft, in parallel with processing operations, was approved. A relatively rapid ramp-up to steady-state production levels of 180 000 oz platinum, palladium, rhodium and gold (4E) is likely to take six years.

Eland has a world-class UG2 orebody, with surface outcropping. The planned average mining depth over the 30-year-plus life-of-mine is 350 m. Fixed and mobile underground equipment has been refurbished and recommissioned, and a revised underground mining layout was developed. Efficient hydropower technology, imported from the Zondereinde mine, is being used.

The mine complex comprises surface and underground infrastructure, including a concentrator with a nameplate capacity of 250 000 t a month, a chrome spiral recovery plant, a tailings storage facility, two decline systems and surface support infrastructure, as well as a mining fleet of more than 100 vehicles.

Two decline systems – Kukama and Nyala – access three mining levels on the UG2 reef and are fully equipped. Eland’s two mining rights have a resource currently estimated at 19.3-million ounces of platinum, palladium rhodium and gold, or 4E, of which rhodium comprises two-million ounces, at an average in situ grade of 3.95 g/t.

Reprocessing of surface ore through the recommissioned secondary circuit of the concentrator, producing platinum group metals, and chrome concentrates, is being undertaken in parallel with underground mine development.

Potential Job Creation
At steady state, the mine will provide direct, meaningful, long-term employment for more than 2 500 people.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Capital expenditure is estimated at R4.3-billion over a five-year period. To date, R1.1-billion has been spent. The project will be fully funded from Northam’s resources.

Planned Start/End Date
The feasibility study concluded in 2019, and work on the conversion of the Kukama decline shaft into a footwall array started in the 2020 financial year, along with limited stoping.

Production is forecast to reach 100 000 oz/y of 4E in the 2024 financial year and increase to 180 000 oz by the 2028 financial year.

Latest developments
The decline system was reconfigured during the 2020 financial year, with the three decline barrels now located in stable norite rock of the immediate footwall to the UG2 reef. In addition, decline conveyors and tips, together with mine water handling systems, were extended to the bottom of the mine.

During the half year to December 31, 2020, decline tunnel development of 746 m was achieved –134 m more than planned. To date, the total decline system has advanced 450 m, opening up six strike drives.

Strike tunnel development in the upper western portion of the mine has advanced, a reef raise has been established and UG2 stoping is ongoing.

Tunnel development of an additional three strike drives started in January 2021, partly aimed at connecting with the neighbouring Maroelabult mine. This will enhance the provision of underground services and build-up of mineable reserves.

The Maroelabult mine was acquired from Barplats Mines, a subsidiary of Eastern Platinum, in 2020. An application for the transfer of the Maroelabult mining rights is in progress.

Treatment of ore from surface sources to recover PGM and chrome concentrates continues, with throughput of just more than 679 822 t of ore at an improved average feed grade of 3.09 g/t, but lower chrome grade. This yielded 20 674 oz 4E in concentrate, together with 26 253 t of chrome concentrate, during the six months to December 31, 2021.

Capital expenditure for this period was R179.4-million and is forecast to be R500-million for the full financial year.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
R&A Strategic Communications, on behalf of Northam Platinum, tel +27 11 880 3924 or email marion@rair.co.za