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RBPlat produces 127 000 oz of PGMs in third quarter

25th October 2021

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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Notwithstanding the ongoing impact of the Covid-19 pandemic, platinum group metals (PGMs) miner Royal Bafokeng Platinum (RBPlat) produced 127 000 oz of platinum, palladium, rhodium and gold (4E) for the quarter ended September 30.

This progress was underpinned by an improved Styldrift performance, which the miner said was marginally offset by lower grades and concentrator recoveries.

Total tonnes hoisted for the reporting period increased by 3.5% to more than 1.3-million tonnes, while total tonnes milled increased by 7.7% to more than 1.2-million tonnes.

For the year to date, total tonnes hoisted amounted to almost 3.5-million tonnes, representing a 13.5% increase compared with the comparative period in 2020.

Total tonnes milled for the year to date amounted to just over 3.4-million tonnes, a 22.5% increase compared with the comparable period in 2020.

Closing surface stocks at the end of the reporting period are estimated at 228 000 t.

At RBPlat’s Bafokeng Rasimone platinum mine (BRPM), the total tonnes hoisted and milled for the reporting period increased by 2.6% and 18.6%, respectively, to 682 000 t and 676 000 t.

Surface stocks reduced by 58 000 t, or 46.8%, while closing surface stocks at the end of the reporting period are now estimated at 66 000 t.

Merensky tonnes milled for the quarter decreased by 7.9% to 384 000 t and reduced by 0.6% to just over one-million tonnes for the year to date, compared with the comparable period in 2020.

RBPlat attributed the reduction in the year-to-date Merensky volumes to increased upper group two (UG2) production as the BRPM South shaft transitions to a UG2 based operation, as its Merensky reserves deplete.

UG2 tonnes milled for the quarter increased by 90.2% to 291 000 t, while year-to-date tonnes milled increased by 80.8% to 828 000 t, compared to 2020.

UG2 volumes represent 43% of total tonnes milled for the quarter and 45% for the year to date.

For the reporting period and year to date, the built-up head grade declined by 2.2% and 4.9% to 3.94 g/t 4E and 3.85 g/t 4E, respectively.

The reduction is mainly attributable to the increased contribution of lower-grade South shaft UG2.

Further, at Styldrift, the focus is now on developing and embedding the operational maturity and associated efficiencies to enable the mine to sustainably achieve 230 000 t a month.

Notwithstanding Covid-19’s impact on Styldrift’s ability to fully leverage its installed infrastructure capacity effectively, total tonnes hoisted for the reporting period amounted to 658 000 t equating to a 4.4% increase compared to the corresponding 2020 period.

The average hoisting performance for the quarter amounted to 219 000 t a month, with a peak of 228 000 t.

Total tonnes milled for the quarter decreased by 2.7% to 572 000 t, with year-to-date milled volumes increasing by 20.2% to 1.5-million tonnes.

Closing surface stocks are estimated at 162 000 t.

The quarter-on-quarter and year-to-date built-up head grade declined by 2% and 3.3% to 3.84 g/t 4E and 3.83 g/t 4E, respectively, owing to on-reef dilution challenges currently being experienced as the northern declines negotiate a known fault zone.

CONCENTRATING
Total tonnes milled for the reporting period amounted to more than 1.2-million tonnes, representing a 7.7% increase compared with the corresponding 2020 period.

Merensky and UG2 tonnes milled amounted to 957 000 t and 291 000 t, respectively, with UG2 equating to 23% of total milled volumes.

The BRPM concentrator treated 675 000 t, of which 35 000 t was UG2 (5%) while the Maseve concentrator treated 446 000 t, of which 129 000 t was UG2 (29%). About 128 000 t was toll treated during the period compared with zero tonnes for the corresponding period in 2020.

For the year to date, total tonnes milled increased by 626 000 t or 22.5% to just over 3.4-million tonnes.

The combined built-up head grade for the quarter and year to date declined by 2.3% and 4.2%, respectively, to 3.89 g/t 4E and 3.84 g/t 4E.

The reduction in head grade is attributable to the increased contribution of the lower-grade South shaft UG2 from BRPM and the on-reef dilution challenges at Styldrift.

Overall 4E recovery performance remained in line with the reduced built-up head grade and increased toll treatment with the quarter-on-quarter and year-to-date 4E recoveries declining by 3.2% and 2.1% to 81.36% and 81.48%, respectively.

The combination of increased milled volumes, lower built-up head grade and associated reduction in recoveries achieved during the quarter, yielded a 4E metals-in-concentrate increase of 2% to 127 000 oz.

The 4E metals-in-concentrate for the year to date increased by 15% to 342 800 oz compared with 2020.

Equivalent 4E metals in surface stocks are estimated at about 25 000 oz.

CASH OPERATING COSTS
Cash operating costs for the reporting period increased by 15.2% to R2.1-billion and 20.6% for the year to date to R5.7-billion, compared with 2020.

The increase in expenditure is attributable to increased production volumes, additional toll treatment expenses owing to the delay in the Maseve Mill-Float upgrade and industry-related inflation.

The decrease in surface stocks, improved production, on-mine inflation, lower grade and associated recoveries have resulted in a 1.6% decrease and 4.8% increase in cash unit cost per tonne milled and 4E ounce, respectively, to R1 683 and R16 730 for the year to date.

BRPM cash operating costs for the quarter and year to date increased by 20.2% and 22.7% to R1-billion and R2.8-billion, respectively, in line with production volumes, UG2 toll treatment and on-mine inflation.

Unit cash costs per tonne milled and per 4E ounce for the quarter increased by 1.4% and 8.3% to R1 556 and R15 137, respectively.

Year-to-date unit costs have decreased by 1.4% to R1 541/t and increased by 7.2% to R15 331/oz of 4E owing to on-mine inflation and lower UG2 grades.

Styldrift cash operating costs for the quarter and year to date increased by 10.6% and 18.5% to R1-billion and R2.8-billion, respectively, in line with production volumes, increased trackless fleet maintenance related costs and on-mine inflation.

The lower milled volumes, grade and associated reduction in recovery resulted in unit cash cost increases for the quarter of 13.7% to R1 907/t milled and by 18.7% to R18 941/oz of 4E.

Year-to-date unit costs have decreased by 1.4% to R1 851/t milled and increased by 2.2% to R18 372/oz of 4E.

RBPlat expects Styldrift’s unit cash costs to reduce, becoming competitive with industry peer levels as further gains in operational maturity, experience, and business improvement processes are made and final steady-state volumes are achieved.

CAPITAL
Total capital expenditure (capex) for the reporting period, meanwhile, decreased by 7.8% to R421-million in line with project and operational stay-in-business (SIB) capital requirements.

Expansion capex for the quarter decreased by 62.5% to R103.2-million compared with 2020, with the decrease in line with project schedule and construction progress at Styldrift, the Maseve concentrator MF2 upgrade and tailings storage facility expansions.

Notwithstanding the impact of Covid-19 on construction, good progress was made with the Maseve MF2 upgrade related works during the reporting period.

Construction works are now expected to be completed by early December, after which commissioning of the upgrade will start.

The upgrade is expected to be fully commissioned during the first quarter of 2022, yielding increased volume and recovery benefits.

The Maseve plant will be systematically ramped up to 180 000 t a month by the second half of 2022 as the circuit is optimised.

Replacement capex amounted to R178.1-million for the quarter and is attributable to the Styldrift replacement project which is currently extending the footwall declines to the north, south and east beyond the original expansion capital footprint to access, establish and secure the required ore reserves to sustain production in the longer term.

SIB capital increased by R32.7-million to R139.7-million, equating to 6.5% of cash operating costs.

The increase in SIB expenditure is mainly attributable to increased Styldrift trackless fleet rebuild and strike belt extension related works.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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