Facility visit 11 October 2005 Agenda Agenda Safety Safety - - PowerPoint PPT Presentation

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Facility visit 11 October 2005 Agenda Agenda Safety Safety - - PowerPoint PPT Presentation

Sep 14, 2022 43 likes •569 views

Facility visit 11 October 2005 Agenda Agenda Safety Safety Ore body re body O Mining methods Mining methods Production Production Operating costs Operating costs Capital

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SLIDE 1

Facility visit

11 October 2005

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SLIDE 2

Agenda Agenda

  • Safety

Safety

  • O

Ore body re body

  • Mining methods

Mining methods

  • Production

Production

  • Operating costs

Operating costs

  • Capital expenditure

Capital expenditure

  • Human resources

Human resources

  • Key business issues

Key business issues

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SLIDE 3 3 000m

FOREST HILL BRAKFONTEIN KLIPFONTEIN HACKNEY DOORNBOSCH CLAPHAM 466 KS ZWARTKOPPIES 413 KS 465 KS 464 KS 116 KT 117 KT 118 KT WATERKOP 113 KT MECKLENBURG 112 KT CROYDON 120 KT SURBITON 115 KT THE SHELTER 121 KT AVOCA 472 KS 507 KS BALMORAL 508 KS 542 KS HILL GROOTHOEK 256 KT MOOIHOEK 255 KT TOUW 282 KT 294 KT NOOIT

  • 324 KT

VERWACHT MAGNETS - 541 KS VLAKTE 543 KS KOP 252 KT GROOT - 284 KT VYGEBOOM WINNAARSHOEK HOEPA - 291 KT KRANZ GARA- DE KAMP PASCHASKRAAL TWICKENHAM 114 KT QUARTZ KLOOF 539 KS DE KOM DSJATE 249 KT DINGAANS - HOOGSTE - PUNT 290 KT 323 KT HOUTBOSCH EERSTE GELUK 322 KT

2 000m 1 000m

250 KT ZWEM - 283 KT KLOOF TWYFE - 119 KT LAAR Merensky Reef UG 2 FERN

EASTERN BUSHVELD

GENOKAKOP 285 KT

Maandagshoek farm Rustenburg Potgietersrust Witbank Warmbaths PRETORIA Barplats Kennedys Vale
  • RPM. RUSTENBURG
NORTHAM
  • RPM. UNION
PP RUST LEBOWA
  • RPM. AMANDELBULT
IMPALA WESTERN AND EASTERN PLATS BARPLATS CROCODILE RIVER BAFOKENG Bushveld Complex Amplats Mines Impala Mines - Gencor Lonrho Mines Goldfields Mines - Northam

B U S H V E L D C O M P L E X

25 O Republic of South Africa 25 O Lydenburg

SOUTH AFRICA

AFRICA

254 KT HENDRIKSPLAATS 281 KT 292 KT DRIEKOP 253 KT MAANDAGSHOEK ONVERWACHT WINTERVELD 293 KT

Locality Locality – – Modikwa Platinum Mine Modikwa Platinum Mine

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SLIDE 4

Location

JV area

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SLIDE 5

Safety

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SLIDE 6

Lost time injury frequency rate

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

Act/F_cast 1.51 3.39 4.56 2.79 2002 2003 2004 YTD

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SLIDE 7

Fatalities

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Act/F_cast 1 3 3 1 2002 2003 2004 YTD

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SLIDE 8

Geology Resources/reserves

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SLIDE 9

Modikwa Platinum Mine Modikwa Platinum Mine – – lease area lease area

2 4 . 8 k m

Not to scale

Total lease area 14 278 ha Total lease area 14 278 ha N

Mpumalanga Province

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SLIDE 10

Modikwa Platinum Mine Modikwa Platinum Mine – – mining area mining area

Deepening of North shaft declines by 1 level

commenced in 2005.

Base case Phase 1 North shaft extension South shaft extension Phase 2 Phase 3

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SLIDE 11

Stoping Profile UG 3A UG 3

UG 2

UG 1 91m 15m 10m 58c m

Triplet 3 Triplet 2 Triplet 1 5cm 12cm 12cm

15 to 70cm FW HW

UG2 Channel

BRC TRC

17cm NORITE SPOTTED ANORTHOSITE MOTTLED ANORTHOSITE PYROXENITE PORPHYRITIC PYROXENITE PEGMATOIDAL PYROXENITE HARZBURGITE CHROMITITE STRINGER CHROMITITE

  • L E G E N D -

Stratigraphic Stratigraphic column in proximity of UG2 column in proximity of UG2

  • Outcropping Merensky & UG2 ,

Westerly Dip ~11°

  • Merensky to UG2 separation

approximately 260m

  • Variable middling of triplets and

Leuconorite Parting Plane (LPP) to Top Reef Contact (TRC) on UG2

  • Norite-Fsp Pyroxenite contact 40-60

cm above MR

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SLIDE 12

50

58 61

20 -45 30 25 8 21 17 3 7 10 10 4 8 8 5

56

4

21 21 21

NORTH SHAFT SOUTH SHAFT HILL ADITS 107 Planned 101 Planned 97 Planned TRC BRC UG2 Leuconorite Unit 10 20 16

Optimal Optimal Stoping Stoping Cut Cut

(per shaft area) (per shaft area)

Mine average planned at 102 cm – Currently 105cm

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SLIDE 13

Vertical grade distribution in UG2

South Shaft North Shaft

Reef channel Hanging wall Foot wall

Average g/t 4E: North 5.65 South 5.99 Total 5.81

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SLIDE 14

Measured Resource Indicated Resource Inferred Resource

2004 UG2 resource 2004 UG2 resource categories categories

(Data Mine model) (Data Mine model)

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SLIDE 15

Indicated Resource Inferred Resource

117 boreholes

2004 2004 Merensky Merensky resource categories resource categories

(Data Mine model) (Data Mine model)

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SLIDE 16

Resource & reserve statement - 2004

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SLIDE 17

Exploration status

  • Phase 1 footprint complete by end 2006
  • Phase 2 drilling commenced in line with current

exploration programme

  • 3D seismic will be conducted in 2006 over a target area
  • n North and South Shafts
  • Merensky Exploration continuing – trial mining to

commence in 2006

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SLIDE 18

Drilling programme 2005-2008

2005 2006 2008 2007 2005 S# 2005 N# 2006 Infill Phase 1 Phase 2

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SLIDE 19

Surface Drilling 5000 10000 15000 20000 25000 30000 35000 40000 45000 2003 2004 2005 2006 metres

On-mine - Exploration drilling

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SLIDE 20

Mining methods

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SLIDE 21

Original design

  • Twin decline shaft systems

– Vehicle access decline – Belt decline

  • Main strike development on-reef
  • Conventional down-dip stoping
  • Twin raises separated by 5m pillar
  • 90 cm stoping width
  • Mechanised development and tramming
  • Flat management / supervisory structures
  • Self directed, multi-skilled work teams
  • No night shift, two panel cycle
  • Continuous operations (Conops)
  • Fully autogenous milling
  • 200 ktpm, 162 kozpa
  • Onverwacht Hill and Mid Shaft areas included
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SLIDE 22

Changes to original design

  • Chairlift decline access
  • Main strike development in the footwall
  • Stoping changed from down-dip to breast
  • 102 cm stoping width
  • Introduced night shift
  • Traditional management structure
  • Ball milling to increase capacity
  • 240 ktpm, 162 kozpa
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SLIDE 23

200 m

Downdip Twin Raise Reef Drive layout

Reef Drive Reef Drive

Twin Reef Raise Dip Pillar Diagonal Muck Bay

Mining Direction

Mined Out Area Unmined Area 210m 70m

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SLIDE 24

200 m

Downdip Single Raise Reef Drive layout

Reef Drive Reef Drive

Single Reef Raise Dip Pillar Strike Pillar Diagonal Muck Bay 210 m

Mining Direction

30 m 80°

6m 2m 3m 4m

Mined Out Area Unmined Area 210m 70m See Enlargement Enlargement

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SLIDE 25

ASG PILLARS

Footwall Drive Footwall Drive

200 m 4 m

Breast Footwall layout

210 m

105 m 8 m 1 m 4 m

Enlargement

Mining Direction Mining Direction

Mined Out Area Unmined Area See Enlargement 30 m Cross Cut Travelling Way & SO Muck Bay

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SLIDE 26

Breast Footwall layout

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SLIDE 27

Current mine design

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SLIDE 28

Current mine design – North shaft

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SLIDE 29

29

Production sources

(000’s tons per month)

  • 25

Low grade dev.

  • 14

10 Mid Shaft 120 81 60 South Shaft 240

  • 120

Steady state 233 210 TOTAL 38 35 Hill 100 80 North Shaft 2006 2005 Production area

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SLIDE 30

Production

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SLIDE 31

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Conversion to footwall strike development & breast stoping

Development required to generate ore reserves

Dip mining Twin raise & reef drives Breast mining Footwall drives 83 22 17

m²/metre

602 472 106

m²/ Prim.- Large Ends

2 272 463 108

m²/ Prim.- R/W, TW, BH & Diag

2 874 935 53

m²/ Total Dev Required to replace 50 000 m² Required to replace 50 000 m² m²/metre

60% of stoping on breast by end 2006, 95% by end 2007 100% reef drives in footwall by end 2008

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SLIDE 32

500 1,000 1,500 2,000 2,500 3,000 3,500

Metres

History 3,184 2,002 2,108 '03 '04 H1 05

Total primary development metres / month (Excludes # Sinking)

2003 to 2004 reduction due to single raise dip mining At steady state breast requires less development than

dip to generate the same ore reserves

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SLIDE 33

Immediately Available Reserves (Raises Holed)

7.7 12.1 17.3 17.8 18

2 4 6 8 10 12 14 16 18 20 2004 2005 * 2006 2007 2008

months

Includes depletion of Hill and mid shaft areas

Transition to 100% underground production

* Revised dip method increased rate of ore reserve build up

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SLIDE 34

Face length build-up

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Aug '05 'Mar '06 'Sep '06 'Jun '07

Metres

Immediately available (Holed) Available for equipping (Holed + Ledged) Immediately stopable (Holed + Led. + Equip.) Resourced ( Stoping)

Planned ratio – stopable: stoping 1,5:1 by end 2006

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SLIDE 35

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

m²

History 22,195 34,842 37,486 '03 '04 H1 05

Monthly area mined (m2)

Planned steady state – 100% underground at 50 000m2 / month

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SLIDE 36

80 85 90 95 100 105 110 115

cm

History 113 103 105 '03 '04 H1 05

Stoping width

Steady state mine average planned at 102 cm by end 2006

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SLIDE 37

Average Tons Milled per month

  • 50,000

100,000 150,000 200,000 250,000

Tons milled

Other Sources 75,545 44,323 22,886 38,124 HG UG2 119,455 157,427 174,114 181,543 2002 2003 2004 H1 05

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SLIDE 38

Includes low grade ‘other’ sources – depleted by end 2005 Current underground average grade 4,45 g/t

Grade

0.00 1.00 2.00 3.00 4.00 5.00 g/t 4E Built Up Grade 2.52 3.23 4.09 4.13 2002 2003 2004 H1 05

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SLIDE 39
  • Steady state planned recovery 86%
  • Achieved 240 ktpm in May 2005
  • Expert systems in place – circuit optimisation ongoing

Plant 4E Recovery

70.00% 75.00% 80.00% 85.00% 90.00% % Recovery 4E 4E Recovery 80.50% 83.60% 84.00% 84.09% 2002 2003 2004 H1 05

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SLIDE 40

Equivalent refined Pt Oz / month

6.00 6.50 7.00 7.50 8.00 8.50 9.00 9.50 10.00 10.50 11.00

Pt Oz's (000's)

History 7.67 9.52 10.69 '03 '04 H1 05

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SLIDE 41

Operating costs Operating costs

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SLIDE 42

Cash cost / ton milled Cash cost / ton milled

Cash cost / Ton milled 50 100 150 200 250 300 350 400

R / Ton Milled

Cash cost / ton milled 185 303 363 355 2002 2003 2004 H1 05

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SLIDE 43

Lower platinum content of Modikwa ore results in higher unit

cost per Pt oz, comparable cost per PGM oz

Cash cost / equivalent refined Pt oz Cash cost / equivalent refined Pt oz

Cash cost / Equivalent Pt oz refined 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

R / Pt oz

Cash cost / Pt oz 6,598 8,057 7,515 7,283 2002 2003 2004 H1 05

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SLIDE 44

Operating costs Operating costs

  • Current cash costs per ton milled and Pt oz high as

build up continues.

  • Drivers of cost reduction
  • Volume increase
  • 4 mining areas to 2
  • 1,5m of equipped face per m face blasted
  • Novice workforce moving up learning curve
  • Less development required
  • Cost reduction initiatives
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SLIDE 45

Capital expenditure Capital expenditure

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SLIDE 46

Capital expenditure (R000’s)

  • Approximately R 160 m to be spent on average on LOM ongoing / replacement capital
  • Approximately R 100 m additional to be spent per year during decline deepening

Total Modikwa

  • 200,000

400,000 600,000 800,000 1,000,000 1,200,000

Total Modikw a 1,077,952 438,241 147,212 111,628 2002 2003 2004 H1 05

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SLIDE 47

Capital expenditure

Main Items for 2005

  • Burgersfort Housing Project R 125 million
  • Flag Boshielo Damwall R 19 million
  • Ore reserve development R60 million - and

commencement of North Shaft deepening by 1 level

  • Off mine capex largely complete
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SLIDE 48

Human resources Human resources

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SLIDE 49

Employee relations Employee relations

  • Community and employee expectations high
  • Non-procedural workplace disruptions – higher than

normal

  • Significant management effort and focus to educate

and mentor workforce and improve relationships

  • Mining Charter Compliance Strategy in place.
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SLIDE 50

Human resources development Human resources development

  • Underground and surface training

Underground and surface training centres centres. .

  • Increased training of supervisors.

Increased training of supervisors.

  • Fall Of Ground competency compliant by Dec

Fall Of Ground competency compliant by Dec 2005. 2005.

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SLIDE 51

Key business issues

  • Improved safety performance
  • Achieve planned volume increase
  • Smooth transition from down dip to breast stoping and moving

drives into footwall

  • Further improve efficiency of the mechanised development and

tramming

  • Improve efficiencies of stoping teams
  • Major transition commenced, complete in 2006
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SLIDE 52

Facility visit

11 October 2005