PHOKENG, NORTH WEST PROVINCE - A sod-turning ceremony, held today at the Bafokeng Rasimone Platinum Mine ((BRPM), marks the start of the development of the R10.3 billion Styldrift Project between joint venture partners Royal Bafokeng Holdings (Pty) Limited (RBH) and Anglo Platinum Limited (Anglo Platinum). (¹) This follows the recent approval by both parties’ boards to proceed with the expansion project situated on the western limb of the Bushveld Complex.
Approximately 400 people – comprising representatives from RBH and Anglo Platinum, municipal and provincial government, and communities in and around the area of the BRPM – attended the ceremony. Speaking at the landmark event, His Majesty Kgosi Leruo Molotlegi, the King of the 300 000-strong Royal Bafokeng Nation (RBN) said: “Underscoring our philosophy of sustainable growth through platinum prosperity, the ceremony cements our joint venture partnership with Anglo Platinum, already on a solid footing with the success of the Boschkoppie operation - revenue from which has already contributed to the socioeconomic development of both the Royal Bafokeng and other local communities.”
Some R181.6 million rand of combined revenue from Boschkoppie and Styldrift will be invested in major infrastructure as well as human capital and local economic development as part of a five year social plan under the RBN’s Vision 2020 and 35-year Masterplan sustainability programmes towards the creation of a sustainable community.
Said Niall Carroll, CEO of RBH, which is responsible for the management and development of the commercial assets of the RBN: “We look forward to commencing the Project, which will simultaneously double BRPM’s current production profile from 220 000 to 450 000 Platinum ounces per annum and provide a significant number of sustainable job opportunities for both the Royal Bafokeng and the greater community.”
With an estimated reserve of 68 million tonnes, the project is anticipated to yield approximately 5.4 million platinum ounces over the mine’s life expectancy of 27 years and to create up to 4 000 jobs by 2035. The Project will also give rise to training and development opportunities to ensure the employment of adequately skilled staff.
Other socioeconomic benefits include the implementation of a DME-approved Social and Labour Plan and a formalised procurement strategy - aimed at empowering SMMEs - which will give preference to historically disadvantaged South African (HDSA) suppliers, sourced predominantly from the local community.
Styldrift was identified along with a portion of the farm Frischegewaagd and Boschkoppies, currently being mined by BRPM, as the last major unexploited block of Western Bushveld Merensky Reef when the joint venture was formed in 2002. The Project, located near BRPM’s North Shaft operation, will entail a twin shaft system which will be sunk to a depth of 740 metres, a new 2.5 million tonnes per annum (mtpa) concentrator adjacent to the existing plant and a 5.5 km overland conveying system. Estimated production of Platinum Group Metals (PGMs) is 370 000 tonnes per annum (tpa) at an average grade of around 4.36 grammes per tonne (g/t).Shaft sinking for the Project is to commence in 2009 with development and ramp-up in 2013, reaching steady state by 2015. Plant design and construction is scheduled for 2012 with commissioning in 2014. Capital expenditure for the project – R10.3 billion in 2009 money terms – will be apportioned equally shared between the two parties and will be repaid over an eight-year period between 2008 and 2016.
Mpueleng Pooe
Tel: +27 (0) 11 219 6000 (office)
+27 (0)82 894 3801 (mobile)
Email: mpueleng@bafokengholdings.com
Website: www.bafokengholdings.com
(¹) A restructuring agreement between the two joint venture parties, announced on 23 October 2008, paves the way for the creation of a Historically Disadvantaged South African (“HDSA”) controlled PGM producer in line with Anglo Platinum’s commitment to broad based BEE as a strategic transformation objective and in support of the ownership requirements of the Mining Charter. The transaction will be effected through the establishment of NewCo Platinum (NewCo), a company which will assume control over all current and future operations of the BRPM joint venture and will be controlled by RBH and independently managed. Administrative and technical support services currently provided by Anglo Platinum will be migrated from Anglo Platinum to NewCo over a period of between 12 and 24 months.
