[miningmx.com] – ANGLO American Platinum (Amplats) is planning a R2bn to 2.5bn expansion in production at its Mogalakwena facilities that would see it produce 420,000 ounces of metal a year by 2018.
Mogalakwena is the only operating mine in the northern limb of the Bushveld complex which is sited in the country’s Limpopo province.
In a presentation to analysts during a site visit today, the 80%-owned Anglo American subsidiary, said this would be achieved through a combination of mine optimisation, in which the stripping ratio would be reduced, and de-bottlenecking at Mogalakwena’s milling and concentrating facilities.
However, the company was guarded on whether an expansion to 600,000 oz/year at the mine could be achieved as this would require an increase in the 420,000 oz/year capacity of the base metals refinery that may prove too expensive.
“The company presented a much more sober view on the possible expansion of the mine,” said Macquarie Research in a note today. “Whilst an expansion to 600koz is practically feasible at the site the capital requirements for the expansion could be prohibitive,” it said.
Amplats confirmed earlier this year that it intended to sell its Rustenburg shafts as well as its Union section and its 49% stake in the Pandora joint venture it holds with Lonmin.
In a presentation published on its website today, Amplats said the platreef orebody that it mines at Mogalakwena was high quality. For instance, the mine had relatively low amounts of chrome in its concentrate which was “favourable from a smelting perspective.”
Amplats said the value per platinum equivalent ounce for Mogalakwena was about 50% greater than the Rustenburg mines. The mine had booked operating free cash flow of R10bn over five-and-a-half years.
It also rarely suffered from industrial action owing to the fact the majority of its employees were drawn from local communities. Employees were required to have a minimum grade 12 qualification in mathematics and literate in English.
Tonnes mined per mining employee per month had increased 21% to 6,310 tonnes in the first half of Amplats 2014 financial year compared to a 13% increase for the whole of 2013.
The mine contained about 3.7 billion tonnes in ore resources. Reserves stand at 1.6 billion tonnes which translates to some 145 million ounces. Additional resources were available at below 700 metres, it said.
