[miningmx.com] – AQUARIUS Platinum extended the life of its Kroondal mine by three years to 9.5 years after agreeing with Anglo American Platinum (Amplats) to extend a pool-and-share agreement (PSA) on adjacent mineral rights.
In terms of the agreement, Amplats will make just under 16 million tonnes of ore available from its Rustenburg mine to Aquarius Platinum’s Kroondal mine. Kroondal and Rustenburg are about 120km north-west of Johannesburg.
The mineral rights combine probable (9.9 million tonnes) and proven ore (6,1 million tonnes) in resources grading at an average of 2.42 grams per tonne.
In return, Aquarius Platinum will pay Amplats a royalty on the mined ore and sell the concentrate produced from its mining activities on the land to Amplats’ refineries on a toll-treatment basis.
The agreement provides comfort to Aquarius Platinum which, it was speculated, could be one of the joint ventures that Amplats may considering terminating when it was assessing the future viability of its operations.
It also helps de-risk Aquarius Platinum somewhat as the Kroondal mine, which produced 167425 platinum group metal ounces last year, comprises 41% of Aquarius total group production.
The first PSA between Aquarius Platinum and Amplats was signed in early 2003 and saw the two companies share revenues, costs and capital in a way that was forward-thinking for the farm-bound nature of precious metals mining in South Africa.
