Name of the Project
Eland mine complex.

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

Project Owner/s
Northam Platinum.

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 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 (PGMs), 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
Strike development in the upper western portion of the mine is progressing, a reef raise has been developed and stoping has begun on the UG2 reef as part of a planned early mining demonstration.

Following the onset of Covid-19, capital trimming led to the decision to temporarily suspend mining build-up, but to continue the development of the declines at Kukama shaft.

This suspension has been lifted and the full capital programme of stoping build-up reinstated. In addition, refurbishment of the primary milling circuit of PGM concentrator is in progress and is planned to be commissioned by the end of the financial year. This will permit the treatment of run-of-mine ore sources, in line with Northam’s planned stoping build-up.

Meanwhile, an agreement to buy the Maroelabult mine from Barplats Mines, a subsidiary of Eastern Platinum, was entered into during the 2020 financial year. An application for transfer of the mining rights is in progress and this is expected to be finalised during this financial year.

Maroelabult is situated west of Kukama shaft and its addition to the Eland mining right will have several synergistic advantages. Work will focus on decline and strike drive development, together with the continuation of the early mining demonstration and recommissioning of the primary PGM circuit at the concentrator.

Work is currently focused on decline and strike drive development, together with continuation of the early mining demonstration and recommissioning of the primary PGMs circuit at the concentrator.

The company expects to release an update on its project at the end of September 2021.

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 northam@rasc.co.za.