Joint-Venture Operations and Associates


MODIKWA PLATINUM MINE


(NON-MANAGED – 50% OWNED)

EQUIVALENT REFINED PLATINUM PRODUCTION
(2011: 124.8 koz)

119.6 koz

OPERATING CONTRIBUTION
(2011: R312m)

R141m

 

Modikwa Mining Shaft
   2012  2011
Safety       
   Fatalities  2  0
   LTIFR  1.1  0.60
Refined platinum production (000 oz)  130.1  129.8
Operating contribution (Rm)  141  312
Gross profit margin (%)  4.1  15.2
Operating free cash flow (Rm)  (107.4)  287.7
Net cash flow (Rm)  (205.7)  184.4
Cash on-mine costs/tonne milled  R878  R737
Mineral Resources inclusive of Ore Reserves     
Merensky 208.8 Mt ? 18.1 4E Moz
UG2 275.2 Mt ? 53.0 4E Moz
JV partner   
ARM Mining Consortium Limited (50%)

MINE OVERVIEW

Modikwa Platinum Mine is an independently managed, 50:50 joint venture between ARM Mining Consortium Limited and Rustenburg Platinum Mines Limited. The mine is on the border of the provinces of Mpumalanga and Limpopo in South Africa, approximately 25 kilometres west of the town of Burgersfort. It forms part of the Eastern Limb of the Bushveld Complex and operates under a mining right covering a total area of 140 square kilometres.

The current mine infrastructure consists of two major decline shafts, namely North Shaft and South Shaft, three adits on Onverwacht Hill, a newly sunk South 2 portal access and a concentrator. The mine is a hybrid operation using conventional stoping, with trackless development and ore clearance. The mine mines the UG2 horizon exclusively, from surface to 450 metres below the surface. The mining method at Modikwa is conventional breast stoping with strike pillars.

Modikwa’s life-of-mine plan consists of a Mineral Resource (exclusive of Ore Reserves) of 60.2 million 4E ounces and an Ore Reserve of 8.7 million 4E ounces.

KEY ACHIEVEMENTS

  • Modikwa achieved 1 million fatality-free shifts on 7 November.
  • The North 1 Phase 2 project - for the deepening of North Shaft by three additional levels - was approved in 2012.

OPERATIONAL REVIEW

Following the achievement of almost 9 million fatality-free shifts, a multiple fatal incident occurred at the mine in February 2012. Sadly, both Ms Selekeng Patricia Moropa and Mr Khateane Lenong lost their lives in the fall-of-ground incident. The lost-time injury-frequency rate deteriorated from 0.60 in 2011 to 1.11 in 2012.

Equivalent refined platinum ounces attributable to Amplats, which included 59.8 koz purchased from the joint-venture partner, decreased by 4% to 119.6 koz. The main cause of this decrease was a 27-day wage strike in which approximately 11,000 equivalent refined platinum ounces were lost. The 4E built-up head grade decreased by 1% to 4.51 g/t, as a result of the increased feed of low-grade open-pit material.

Amplats’ share of cash on-mine costs (mining and concentrating) increased by 16% to R976 million, compared with R841 million in 2011. Cash on-mine costs per tonne milled increased by 19% to R878; while cash operating costs (after allowing for off-mine smelting and refining activities) per equivalent refined platinum ounce increased by 22%, to R18,131.

CAPITAL EXPENDITURE

Amplats’ attributable share of capital expenditure for the year totalled R187 million, which was 5% higher than expenditure in 2011. This was largely the result of increased expenditure on the UG2 North 1 Shaft Phase 2 and the South 2 Shaft Phase 1 projects.

The UG2 North 1 Shaft Phase 2 project was approved for execution during the third quarter of 2012. The project deepens the existing shaft by three levels, with steady-state production of 113 k Pt oz per annum expected in 2019.

The South 2 Shaft Phase 1 project remains at feasibility stage, with approval anticipated during the third quarter of 2013. The project includes the development of a new decline shaft as well as relevant surface infrastructure. The establishment of the South 2 Shaft portal and access road has been completed, and the sinking of the first leg of both the material and chairlift declines has been completed. Project work executed in 2012 was done without any lost-time injuries.

OUTLOOK

A marginal increase in equivalent refined platinum ounce production is expected in 2013 owing to the impact of the strike in 2012.

The UG2 North 1 Shaft Phase 2 project was approved for execution during the third quarter of 2012

MOTOTOLO PLATINUM MINE


(NON-MANAGED – 50% OWNED)

EQUIVALENT REFINED PLATINUM PRODUCTION
(2011: 109.4 koz)

118.8 koz

OPERATING CONTRIBUTION
(2011: R329m)

R274m

 

Modikwa Mining Shaft
 
 
   2012  2011
Safety       
    Fatalities  0  1
    LTIFR  0.44  0.57
Refined platinum production (000 oz)  123.8  115.1
Operating contribution (Rm)  274  329
Gross profit margin (%)  19.4  23.9
Operating free cash flow (Rm)  80.7  237.2
Net cash flow (Rm)  72.9  198.3
Cash on-mine costs/tonne milled  R533  R494
Mineral Resources inclusive of Ore Reserves     
UG2 40.2 Mt ? 5.5 4E Moz
JV partner   
Xstrata Kagiso Platinum Partnership (50%)

MINE OVERVIEW

Mototolo Platinum Mine is a 50:50 joint venture between the Xstrata Kagiso Platinum Partnership and Rustenburg Platinum Mines Limited. The mine is managed by Xstrata SA Proprietary Limited, and the concentrator by Amplats. Situated in the province of Limpopo in South Africa, it is approximately 30 kilometres west of the town of Burgersfort. It forms part of the Eastern Limb of the Bushveld Complex and operates under a mining right covering a total area of nine square kilometres.

Current mine infrastructure consists of two decline shafts, namely Lebowa Shaft and Borwa Shaft. Mototolo is fully mechanised and mines the UG2 horizon exclusively, from surface to approximately 450 metres below surface. The mining method is bord and pillar.

Mototolo’s life-of-mine (LoM) extends to 2024. The current LoM plan consists of a Mineral Resource (exclusive of Ore Reserves) of 3.5 million 4E ounces and an Ore Reserve of 1.6 million 4E ounces.

KEY ACHIEVEMENTS

  • A year-on-year 23% reduction in lost-time injury-frequency rate highlighted a significant improvement in safety performance.
  • The poor ground conditions from a fault zone that previously prevented Borwa Shaft from achieving its targeted production levels have been steadily improving as panels were re-established across the fault.
  • The mine has increased its throughput by 7%, from an average 192 kt per month in 2011 to an average 206 kt per month in 2012, thus exceeding its nameplate capacity of 200 kt per month.

OPERATIONAL REVIEW

There were no fatalities at Mototolo in 2012 (compared with one in 2011). The lost-time injury-frequency rate improved by 23%, from 0.57 in 2011 to 0.44 in 2012.

Equivalent refined platinum ounces attributable to Amplats, which included 59.4 koz purchased from the joint-venture partner, increased by 9% to 118.8 koz. The 4E built-up head grade improved from 3.27 g/t to 3.33 g/t as a result of reduced hanging-wall and footwall waste mining in certain areas.

Despite industry challenges in respect of industrial action in 2012, Mototolo signed a wage agreement without industrial action.

Amplats’ share of cash on-mine costs (mining and concentrating) increased by 16% to R657 million, compared with R568 million in 2011. Cash on-mine costs per tonne milled increased by 8% to R533; while cash operating costs (after allowing for off-mine smelting and refining activities) per equivalent refined platinum ounce increased by 8%, to R12,726.

CAPITAL EXPENDITURE

Amplats’ attributable share of capital expenditure for the year totalled
R70 million, which was 42% lower than expenditure in 2011, mainly as the result of market-related capital-saving initiatives.

OUTLOOK

Equivalent refined platinum ounce production is expected to remain flat in 2013.

Equivalent refined platinum ounces attributable to Amplats increased by 9% to 118.8 koz.
 
 

KROONDAL PLATINUM MINE

(NON-MANAGED – 50% OWNED)

EQUIVALENT REFINED PLATINUM PRODUCTION
(2011: 208.6 koz)

213.2 koz

OPERATING CONTRIBUTION
(2011: R536m)

R221m

 

Modikwa Mining Shaft
 
 
   2012  2011
Safety       
    Fatalities  1  1
    LTIFR  1.35  0.76
Refined platinum production (000 oz)  223.4  217.6
Operating contribution (Rm)  221  536
Gross profit margin (%)  5.0  18.7
Operating free cash flow (Rm)  (384.6)  314.5
Net cash flow (Rm)  (484.0)  211.2
Cash on-mine costs/tonne milled  R877  R726
Mineral Resources inclusive of Ore Reserves     
UG2 32.3 Mt ? 6.2 4E Moz
JV partner   
JV partner: Aquarius Platinum SA (50%)

MINE OVERVIEW

The Kroondal Platinum Mine is a 50:50 pooling-and-sharing agreement (PSA 1) between Aquarius Platinum (South Africa) Proprietary Limited (AQPSA) and Rustenburg Platinum Mines Limited. The mine is managed by AQPSA. It is situated in the province of North West in South Africa, approximately 10 kilometres outside the town of Rustenburg, and located up-dip of Rustenburg Platinum Mines (RPM). Kroondal forms part of the South-western Limb of the Bushveld Complex and operates under a mining right covering a total area of 22 square kilometres.

Current mine infrastructure consists of four decline shafts, namely the Bambanani, Simunye, Kopaneng and Kwezi shafts, and two concentrators. It is a partly mechanised, partly handheld-drilling operation that mines the UG2 Reef exclusively, between surface and 450 metres below surface. The mining method is bord and pillar.

Kroondal’s life-of-mine (LoM) extends to 2021. The current LoM plan consists of a Mineral Resource (exclusive of Ore Reserves) of 0.4 million 4E ounces and an Ore Reserve of 4.7 million 4E ounces.

KEY ACHIEVEMENTS

  • Kroondal’s Bambanani Shaft achieved 3 million fatality-free shifts in June 2012.
  • Kroondal reached 1 million fatality-free shifts in October 2012.
  • The migration from contractor mining to an owner-miner model has been successfully completed.
  • The implementation of a revised hanging-wall support regime, to ensure safer and more productive operations, has improved the face time for mining crews.

OPERATIONAL REVIEW

Regrettably a fatality occurred at Kroondal on 17 April 2012 (there was also one fatality at the mine in 2011). Mr Tomas Alberto Ubisse, a utility-vehicle operator at the Simunye Shaft, sadly passed away a day after he was injured in a fall-of-ground incident.

The lost-time injury-frequency rate regressed, from 0.76 in 2011 to 1.35 in 2012.

Equivalent refined platinum ounces attributable to Amplats, which included 106.6 koz purchased from the joint-venture partner, increased by 2% to 213.2 koz, from 208.6 koz in 2011.

Amplats’ share of cash on-mine costs (mining and concentrating) increased by 20% to R1.64 billion, compared with R1.37 billion in 2011. Cash on-mine costs per tonne milled increased by 21% to R877; while cash operating costs (after allowing for off-mine smelting and refining activities) per equivalent refined platinum ounce increased by 17%, to R16,480.

CAPITAL EXPENDITURE

Amplats’ attributable share of capital expenditure for the year totalled R285 million, which was 24% greater than expenditure in 2011. This rise can be attributed to, firstly, the continuation of the K6 Shaft project; and, secondly, the purchase of mechanised bolters required for the improvement in support standards.

The K6 decline shaft project aims to replace UG2 production across the Kroondal operation. At steady state, it will contribute approximately 87 k Pt ounces per annum. Execution of the K6 decline shaft remains on track and is due to be completed in the second quarter of 2014.

OUTLOOK

An increase in equivalent refined platinum ounce production is expected for 2013 following the implementation of a revised
hanging-wall support regime.

 
 

An increase in equivalent refined platinum ounce production is expected for 2013 following the implementation of a revised hanging-wall support regime.


MARIKANA PLATINUM MINE

(NON-MANAGED – 50% OWNED)

EQUIVALENT REFINED PLATINUM PRODUCTION
(2011: 47.0 koz)

26.4 koz

OPERATING CONTRIBUTION
(2011: R42m)

-R110m

 

 
Modikwa Mining Shaft
   2012  2011
Safety       
    Fatalities  0  0
    LTIFR  0.51  0.27
Refined platinum production (000 oz)  28.2  48.7
Operating contribution (Rm)  (110)  42
Gross profit margin (%)  (45.9)  2.3
Operating free cash flow (Rm)  (29.7)  (52.8)
Net cash flow (Rm)  (33.9)  (55.3)
Cash on-mine costs/tonne milled  R951  R736
Mineral Resources inclusive of Ore Reserves     
UG2 33.1 Mt ? 5.4 4E Moz
JV partner   
Aquarius Platinum SA (50%)

MINE OVERVIEW

Marikana Platinum Mine is a 50:50 pooling-and-sharing agreement (PSA 2) between Aquarius Platinum (South Africa) Proprietary Limited (AQPSA) and Rustenburg Platinum Mines Limited. The mine is managed by AQPSA and is situated in the province of North West in South Africa, approximately 12 kilometres outside the town of Rustenburg. It forms part of the South-western Limb of the Bushveld Complex and operates under a mining right covering a total area of 33 square kilometres.

Mine infrastructure consisting of four decline shafts and a concentrator are on care and maintenance. The open pit was mined out and closed in 2011.

Marikana has a Mineral Resource (exclusive of Ore Reserves) of 1.8 million 4E ounces and an Ore Reserve of 3.1 million 4E ounces.

KEY ACHIEVEMENTS

  • Marikana achieved 1 million fatality-free shifts in January 2012.
  • The Marikana 5 Shaft was placed on care and maintenance in April 2012; and the concentrator and the Marikana 4 Shaft were placed on care and maintenance in June 2012.
  • Most employees (more than 90%) were successfully redeployed to other sites.

OPERATIONAL REVIEW

There were no fatalities in 2012 (and none in 2011). The lost-time injury-frequency rate regressed, from 0.27 in 2011 to 0.51 in 2012.

Equivalent refined platinum ounces attributable to Amplats, which included 13.2 koz purchased from the joint-venture partner, decreased by 44% to 26.4 koz in 2012, compared with 47.0 koz in 2011.

Marikana Mine was placed on care and maintenance in June 2012 owing to the current global economic conditions. This decision was made in the interests of preserving the Ore Reserves until an improved economic climate merits extraction in future.

Amplats’ share of on-mine costs (mining and concentrating) decreased by 47% to R249 million, compared with R473 million in 2011. Cash on-mine cost per tonne milled increased by 29% to R951; while cash operating costs (after allowing for off-mine smelting and refining activities) per equivalent refined platinum ounce increased by 22%, to R20,064.

CAPITAL EXPENDITURE

Amplats’ attributable share of capital expenditure for the year totalled
R39 million, which was 44% lower than expenditure in 2011.

OUTLOOK

No production is expected from Marikana Mine in 2013.

Marikana Mine was placed on care and maintenance in June 2012 owing to the current global economic conditions.
 
 

BAFOKENG-RASIMONE PLATINUM MINE

(NON-MANAGED – 33% OWNED)

EQUIVALENT REFINED PLATINUM PRODUCTION
(2011: 180.0 koz)

171.5 koz

ATTRIBUTABLE PROFITBEFORE TAX
(2011: R220)

R135m

21834
18145
 
   2012  2011
Safety       
Fatalities  1  0
LTIFR  0.68  0.91
Financial    
Amplats attributable profit/(loss) before tax (Rm)  135  220
Net cash distributions/(cash calls) (Rm)  (186)  32
Mineral Resources inclusive of Ore Reserves     
Merensky 162.2 Mt ? 38.4 4E Moz
UG2 202.3 Mt ? 34.0 4E Moz
JV partners   
Royal Bafokeng Platinum Limited (67%)

MINE OVERVIEW

Bafokeng-Rasimone Platinum Mine (BRPM) is a 67:33 joint venture between Royal Bafokeng Resources Proprietary Limited and Rustenburg Platinum Mines Limited. It is managed by Royal Bafokeng Platinum Management Services Proprietary Limited. The mine is situated in the province of North West in South Africa, approximately 25 kilometres north of the town of Rustenburg. It forms part of the Western Limb of the Bushveld Complex and operates under a mining right covering a total area of 87 square kilometres.

Current mine infrastructure consists of two decline shafts, namely North Shaft and South Shaft, and a concentrator. The Styldrift 1 Main and Service shafts are currently being sunk as an expansion project on the Merensky Reef. Both these shafts have intersected the reef at the 600-metre level. Most of the mining at BRPM occurs on this reef, although mining has also begun on the UG2 Reef at both the North and South shafts. The mining method at BRPM is conventional breast stoping with strike pillars. The operating depth for the current workings is between 50 metres and 500 metres below surface.

BRPM’s life-of-mine plan consists of a Mineral Resource (exclusive of Ore Reserves) of 49.9 million 4E ounces and an Ore Reserve of 16.7 million 4E ounces.

KEY ACHIEVEMENTS

  • BRPM achieved 2 million fatality-free shifts on 1 February 2012.
  • The Styldrift 1 Shaft intersected the Merensky Reef in 2012, and station development has begun.
  • The push to increase immediately stopeable Ore Reserves resulted in a 50% increase in such reserves over the year. It will continue to drive improvements in team efficiency and productivity going forward.

OPERATIONAL REVIEW

Regrettably, a fatality occurred at BRPM on 6 February 2012. (There were no fatalities at the mine in 2011.) Mr Castigo Ndeve, a miner’s assistant at North Shaft, was injured in a fall-of-ground incident and later died.

The lost-time injury-frequency rate (LTIFR) at the mine improved by 26%, from 0.91 in 2011 to 0.68 in 2012.

Amplats purchased 171.5 koz equivalent refined platinum ounces of BRPM production in 2012, a 5% decrease from 2011. The reduction can be attributed to safety-related production stoppages and also the volatile employee-relations environment in the second half of 2012 owing to the unrest in the Rustenburg area.

FINANCIAL REVIEW

BRPM has been equity-accounted for at 33% since 8 November 2010. Amplats’ attributable profit before taxation was R135 million for 2012 (2011 profit before taxation: R220 million). Net cash calls for 2012 totalled R186 million to BRPM, mainly as a result of the 33% of capital funding to the Styldrift project (2011 cash distributions from BRPM: R32 million).

PROJECTS

BRPM Phase 2 project

The Phase 2 project replaced depleted Merensky Reef production in the upper levels of the decline shafts at both the North and South shafts. Both decline shafts have been extended by an additional five levels, from level 6 to level 10. Project execution was completed on schedule and under budget, with ramp-up in progress. Steady-state production is expected to be achieved on target in 2014.

BRPM Phase 3 project

The Phase 3 project is providing further replacement of Merensky production at the North Shaft complex, through the extension of the existing decline shaft by an additional five levels, from level 10 to level 15. At steady state, the project will contribute 70 k Pt ounces per annum. It continues to make steady progress and remains on track for completion in 2017.

Styldrift 1 Shaft

The Styldrift 1 Shaft project will see the establishment of a new 250 ktpm Merensky Mine (230 ktpm reef and 20 ktpm waste) accessing the ore body via two vertical shafts. Both shafts have intersected the Merensky Reef horizon at the 600-metre level, where the station infrastructure for both shafts is being developed. At steady state, the Styldrift Shaft will contribute an additional 220 k Pt ounces per annum to the business of BRPM.

OUTLOOK

Production in 2013 is expected to remain flat and the BRPM Phase 3 and Styldrift 1 projects will continue as scheduled.

 
 
LTIFR improved by 26%, from 0.91 in 2011 to 0.68 in 2012.
19522

BOKONI PLATINUM MINE

(NON-MANAGED – 49% OWNED)

EQUIVALENT REFINED PLATINUM PRODUCTION
(2011: 59.6 koz)

55.1 koz

ATTRIBUTABLE LOSS BEFORE TAX
(2011: -R552)

-R674m

21856
18127
 
   2012  2011
Safety       
Fatalities  1  1
LTIFR  1.49  1.87
Financial    
Amplats attributable profit/(loss) before tax (Rm)   (674)  (552)
Net cash distributions/(cash calls) (Rm)  (293)  (232)
Mineral Resources inclusive of Ore Reserves    
Merensky 225.1 Mt ? 35.8 4E Moz
UG2 368.2 Mt ? 75.7 4E Moz
JV partners   
Atlatsa Resources (51%)

MINE OVERVIEW

Bokoni Platinum Holdings Proprietary Limited is a 51:49 joint venture between Atlatsa Resources Corporation (Atlatsa) and Rustenburg Platinum Mines. The mine is situated in the province of Limpopo in South Africa, approximately 80 kilometres south-east of the town of Polokwane. It forms part of the North-eastern Limb of the Bushveld Complex and operates under a mining right covering a total area of 147 square kilometres.

Current mining infrastructure consists of a vertical shaft (Vertical Shaft), three decline shafts (UM2, Middelpunt Hill and Brakfontein) and a concentrator. The older Vertical and UM2 shafts make use of conventional mining methods, while the Brakfontein and Middelpunt Hill shafts, which are in ramp-up phase, use hybrid mining methods. Merensky ore is produced from the Vertical, UM2 and Brakfontein shafts and UG2 ore from the Middelpunt Hill Shaft. The operating depth for the current workings is between surface and 500 metres below surface.

Bokoni’s life-of-mine plan consists of a Mineral Resource (exclusive of Ore Reserves) of 99 million 4E ounces of ore and an Ore Reserve of 10.1 million 4E ounces.

REFINANCING TRANSACTION

In 2012, Amplats and Atlatsa agreed in principle to the restructuring, recapitalisation and refinancing of Atlatsa and Bokoni Platinum Holdings Proprietary Limited. The implementation of the transactions is subject to the fulfilment of certain conditions precedent, including regulatory approval and Atlatsa shareholder approval. This transaction will be accounted for once agreements have been signed and these conditions have been fulfilled. Amplats and Atlatsa are collaborating on initiatives to optimise Bokoni Platinum Mine and Atlatsa’s finances.

KEY ACHIEVEMENTS

  • The change in management during 2012 delivered the expected improvements in safety, production and cost performance, up until the strike on 1 October 2012.

OPERATIONAL REVIEW

Regrettably, Mr Zimele Gwantsu was fatally injured in a fall-of-ground incident at Vertical Shaft on 14 February 2012. (There was also one fatality at the mine in 2011.)

The lost-time injury-frequency rate (LTIFR) improved by 21%, from 1.87 in 2011 to 1.49 in 2012.

Amplats purchased 55.1 koz of equivalent refined platinum ounces of Bokoni production in 2012, an 8% decrease over the figure for 2011. Bokoni Mine achieved a significant improvement in production performance during the first nine months of 2012, when equivalent refined platinum ounce production increased by 21% to 53.9 koz compared with production in the first nine months of 2011. Unfortunately, an illegal workforce strike that began on 1 October 2012 and lasted 70 days resulted in equivalent refined platinum ounce production of only 1.2 koz in the fourth quarter of 2012.

FINANCIAL REVIEW

Bokoni Holdco is equity accounted for at 49%. Amplats’ attributable loss before taxation was R674 million for 2012 (2011 loss before taxation: R552 million). Net cash calls for 2012 totalled R293 million to Bokoni Holdco (2011 cash calls to Bokoni Holdco: R232 million).

PROJECTS

The Brakfontein project entails the extension of the existing decline shaft and development (including infrastructure) on two additional levels. This forms part of the production build-up to 100 ktpm of Merensky Reef ore. The project was planned to replace declining Merensky production at the Vertical and UM2 shafts.

The Middelpunt Hill Phase 3 project is currently in feasibility study. This project aims to increase Middelpunt Hill’s UG2 production output from 28 ktpm to 60 ktpm.

OUTLOOK

The mine is expected to ramp up production in 2013, with continued operational improvements and the introduction of opencast Merensky Reef mining at the Klipfontein farm.

 
 
LTIFR improved by 21%, from 1.87 in 2011 to 1.49 in 2012.

19531

 

PANDORA PLATINUM MINE

(NON-MANAGED – 42.5% owned)

ATTRIBUTABLE PROFIT
(2011: R47)

R20m

21875

18163

 
   2012  2011
Safety       
Fatalities  0  0
LTIFR  0.71  1.53
Financial    
Amplats attributable profit/(loss) before tax (Rm)   20  47
Net cash distributions/(cash calls) (Rm)  107  14
Mineral Resources inclusive of Ore Reserves     
UG2 189.8 Mt ? 28.4 4E Moz
JV partners  
Eastern Platinum Limited
(a subsidiary of Lonmin plc)
 (42.5%)
Bapo-Ba-Mogale Mining Company (7.5%)
Mvelaphanda Resources (7.5%)

MINE OVERVIEW

Rustenburg Platinum Mines Limited has a 42.5% interest in the Pandora Joint Venture. The other partners are Eastern Platinum Limited (42.5%), a subsidiary of Lonmin plc, the Bapo-Ba-Mogale Mining Company (7.5%) and Mvelaphanda Resources (7.5%). The mine is situated in the province of North West in South Africa, approximately 40 kilometres east of the town of Rustenburg in Lonmin’s Marikana mining area. It forms part of the South-western Limb of the Bushveld Complex.

The current mine infrastructure, which belongs to Lonmin, consists primarily of one decline shaft system, namely the E3 decline, which mines UG2 ore exclusively. Pandora is a shallow, conventional underground mine with current workings between surface and 300 metres below surface.

The current life-of-mine (LoM) plan consists of a Mineral Resource (exclusive of Ore Reserves) of 24.9 million 4E ounces and an Ore Reserve of 2.3 million 4E ounces.

KEY ACHIEVEMENTS

  • Pandora achieved 2 million fatality-free shifts on 10 February 2012 (this was attained over four years of mining).
  • The extension of the decline from 7 to 9 level was handed over to production crews in 2012.

OPERATIONAL REVIEW

Pandora Joint Venture had no fatalities in 2012 (as in 2011). The lost-time injury-frequency rate (LTIFR) improved by 54%, from 1.53 in 2011 to 0.71 in 2012.

Production at Pandora was heavily impacted by the labour unrest at Lonmin’s Marikana operations in the second half of 2012. The unrest subsided in early October 2012 and normal operations started ramping up later in the month after a safe start-up had been ensured.

There are no equivalent refined platinum ounces attributable to Amplats in the case of Pandora, as all the ore is sold to Western Platinum Limited (a subsidiary of Lonmin plc). Platinum production amounted to 39.1 koz in 2012, an increase of 9% over production in 2011.

FINANCIAL REVIEW

Pandora is equity-accounted for at 42.5%. Amplats’ attributable profit before taxation was R20 million for 2012 (2011 profit before taxation: R47 million). Net cash distributions for 2012 totalled R107 million from Pandora (2011 cash distributions from Pandora: R14 million).

PROJECTS

The Plan 4 project to extend the decline from 7 to 10 level was undertaken to maintain the 60 ktpm production of UG2 ore at the existing E3 decline shaft. The project’s execution remains on track, with completion expected in the second quarter of 2013.

Feasibility studies are under way to establish the optimal extraction for the deeper reserves in E3 shaft, as well as adjoining shallow and deep reserves.

OUTLOOK

Production in 2013 is expected to increase as a result of the new level (9 level) coming into production.

 
 
Platinum production amounted to 39.1 koz in 2012, an increase of 9% over production in 2011.