JOHANNESBURG (miningweekly.com) – Seven relatively shallow primary adjoining mining projects that focus largely on upper group two (UG2) reef and mainly mechanised mining are at various stages of development within the South African Platinum Group Metals (PGM) portfolio of the Johannesburg Stock Exchange-listed Sibanye-Stillwater.

Demonstrated by Sibanye-Stillwater executive VP head of projects Ralph Lombard was that these projects are higher-margin projects of low capital intensity, with most of them brownfield extensions. (Also watch attached Creamer Media video.)

The seven are the Siphumelele and Thembelani extension reserves projects in Rustenburg, the East 4 reserves project at Marikana, the Kopaneng and Bathopele extension resources projects at Rustenburg, the East 3 and Saffy extension resources projects at Marikana.

All are envisaged for mechanised mining with the exception of Thembelani and all the projects are on contiguous property that is owned by Sibanye-Stillwater.

Also listed are two secondary mining PGM recovery surface tailings projects as well as two processing projects, one a PMR upgrade project and the other a smelter project to support blend optimisation.

Highlighted was that:

• integration of mining across contiguous boundaries unlocks additional value;
• shaft connectivity improves mine planning flexibility and sequencing; and
• existing infrastructure and shared services improve economics, reduce complexity and cut production lead time.

Acquisition of 100% of the Kroondal PGM mine and its integration into the Rustenburg operation facilitate optimisation of cross boundary operational synergies and early value from combined resources, Lombard pointed out in his presentation covered by Mining Weekly.

The Siphumelele extension in execution consolidates the Bambanani and Siphumelele operations into a single mining complex, which allows for the full extraction of the Bambanani reserve.

The first blast in May was achieved a month ahead of plan and connection with Bambanani mine is targeted for June 2028.

Production is expected from March next year and the planned capital footprint has January 2031 as its scheduled completion date.

Value is being generated by eliminating mine boundaries and payback of the R2.8-billion capital expenditure for Siphumelele is expected in seven years.

Expected mine life extends to 2039. Net present value is R2-billion, and a 40% internal rate of return is calculated.

Mining through the old Kroopdal/Rustenburg boundary unlocks synergies between the operations and establishment of shared services reduces unit costs for both operations.

“What's quite exciting is seeing our K4 Marikana project, which in our half-year results will show a positive contribution from this year onwards, which is part of the good news as we keep on developing these projects,” Lombard enthused.

Because of the mining of the Merensky reef ahead of the UG2 reef, there is a significant amount of legacy infrastructure that is again being utilised, which lowers capital cost.

“We're not trying new mining methods. We know quite well how to do mechanised low-profile mining and board-and-pillar mining, and with that also comes the benefit of an experienced workforce, which is one of the other benefits we have by operating in this brownfield environment, which can assist us tremendously as we ramp up these projects, and these crews move down dip,” Lombard pointed out.

Everything shown was shallow to intermediate depth, with no deep level type of PGM mining is being planned at this stage.

Key in the Rustenburg/Marikana area are the orebody declines of nine degrees to 13.5^o, which allows for a continuation of mechanised mining.

“We also have the ability to combine mines to become one solid mining unit again and bring us a good return on capital and payback," Lombard reported.

With the Siphumelele and Thembelani extension projects in execution, Thembelani stoping crews are contributing to revenue.