Name and Location
Styldrift Merensky Phase 1 project, North West, South Africa.

Client
Royal Bafokeng Platinum (67%) (RBPlat) and Anglo American Platinum (33%) (Amplats).

Project Description
The Styldrift project area is adjacent to the existing Boschkoppie mining area. The mine will exploit one of the last major Merensky mining blocks on the Western Bushveld. About 60-million tonnes is expected to be extracted over the life of the mining operation between 2015 and 2043.

The mine will process 230 000 t/m of Merensky reef and 20 000 t/m of waste at steady state.

The project will deliver an underground operation, which will be accessed through a twin vertical shaft system, with the main shaft being sunk to 758 m and the services shaft to 723 m. Production will initially be through wide-reef trackless mining methods and later through narrow-reef conventional mining methods.

The Styldrift project site is located about 5.5 km from the existing Bafokeng Rasimone Platinum Mine (BRPM).

During steady-state operations, the mine will produce about 220 000 oz/y of platinum, effectively doubling BRPM's platinum ounce production to about 400 000 oz/y.

Shaft site infrastructure will comprise the twin shaft system, associated mining surface infrastructure concentrator plant and the waste rock dumps.

Value
R11.8-billion.

Duration
The project was approved by the boards of Amplats and Royal Bafokeng Holdings (RBH) during the third quarter of 2008.

First production is expected to start in the second half of 2015, while steady production is expected to start in the second half of 2018.

Latest Developments
RBPlat has reported in its results for the quarter ended March 31, 2013, that the Styldrift project is 30.30% complete based on the revised project schedule resulting from the project optimisation study.

Shaft sinking operations have progressed to a depth of 658 m at the Main shaft and to 642 m below surface at the Services shaft, with the stations at 600 and 642 levels being established at both shafts during the period.

Lateral development on the 600 and 642 levels continued during the quarter, with 479 m developed and 34 m of raise boring having been completed to date. The next key sinking milestone of reaching the 708 level station is planned for the end of April 2013.

Project surface construction has progressed according to plan, with the rock winder house, main substation and central workshops reaching completion during the quarter.

Key Contracts and Suppliers
TWP Projects (main project engineering, procurement and construction management contractor); Anglo technical division (mine shaft design); Mining & Engineering Technical Services (Mets − services shaft headgears); Shaft Sinkers (main and services shafts and associated works); Louwill Engineering (main and services shafts’ headgears and winder house structural manufacturing and erection); FLSmidth Minerals (main shaft personnel and material winder mechanical portion); Actom (formerly Alstom Industry − main shaft personnel and material winder electrical portion); Coilmech (service winder mechanical and electrical portions); Stefanutti Stocks Civils Wramatshe joint venture (civils Phase 2 contract – main bulk surface civils); Sarens (cranes); DRA Mineral Projects (concentrator study) and Sandvik Mining (underground production trackless equipment).

On Budget and on Time?
The overall project is on schedule.

Capital expenditure for the quarter ended March 31, 2013, totalled R138.02-million, with the expenditure for 2013 estimated at R728-million, including contingencies and escalations. Project commitment to date reached R2.280-billion in the period and expenditure was R1.968-billion.

Contact Details for Project Information
RBPlat investor relations manager Lindiwe Montshiwagae, tel +27 11 530 8056, fax +27 86 219 5131 or email lindiwe@bafokengplatinum.co.za; or head of projects Neil Carr, cell +27 83 321 1499 or email neil@bafokengplatinum.co.za.
TWP Projects, tel +27 11 218 3000.
Mets, tel +61 8 9421 9000 or fax +61 8 9325 8311.
Shaft Sinkers, tel +27 11 445 4300.
Louwill Engineering, tel +27 11 818 5186, fax +27 11 818 5185 or email mail@louwill.co.za.
FLSmidth Minerals, tel +45 36 18 10 00, fax +45 36 44 11 46 or email info@flsmidth.com.
Actom, tel +27 11 820 5111 or fax +27 11 820 5100.
Coilmech, tel +27 11 452 4063, fax +27 11 452 6104 or email info@coilmech.co.za.
Stefanutti Stocks, tel +27 11 571 4300, fax +27 11 571 4370 or email holdings@stefstocks.com.
Sarens, tel +27 11 861 3800, fax +27 11 861 3899 or email info@sarenssa.co.za.
Dowding, Reynard & Associates, tel +27 11 202 8600 or email info@drasa.co.za .
Sandvik Mining business development manager, EMEA, Bjorn Gohre, tel +27 11 570 9676.