Name of the Project
Eland mine complex – Kukama shaft project.

Location
The project is located in Brits, in South Africa’s North West province.

Project Owner/s
Northam Platinum.

Project Description
The Kukama project will form the production base for the broader Eland complex.

The Eland mine was put on care and maintenance in 2015 and Northam continued to manage it as such while undertaking a feasibility study for the Kukama shaft.

Eland’s two mining rights have a resource currently estimated at 19.3-million ounces of platinum, palladium, rhodium and gold (4E), at an average in situ grade of 3.95 g/t.

The mine complex includes surface and underground infrastructure, including a 250 000 t/m concentrator, a chrome spiral recovery plant, a tailings storage facility, two decline systems and surface support infrastructure, as well as a mining fleet of more than 100 vehicles.

The Kukama feasibility study envisages steady-state production of 150 000 oz/y of 4E, with unit costs in the lower half of the industry cost curve.

The project has a life-of-mine of more than 30 years.

Potential Job Creation
The project is expected to create 2 800 permanent jobs.

All-in Sustaining Costs/All-in Costs
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Capital expenditure is estimated at R2.2-billion over a five-year period. The project will be fully funded from Northam’s resources.

Planned Start/End Date
Conversion of the Kukama decline shaft into a footwall array will start in the 2020 financial year, along with limited early stoping.

Strike development and stoping build-up is scheduled to start in the 2021 financial year.

Production is forecast to reach 100 000 oz/y 4E by 2025 and steady-state production of 150 000 oz/y 4E is forecast from 2029.

Latest Developments
The development of the declines at the Kukama shaft have started, together with ongoing refurbishment and recommissioning of fixed and mobile underground equipment.

In addition, the mobile tunnel borer (MTB) trial, to test its suitability for advancing the Kukama decline system, has been completed. This has yielded positive results and the MTB will continue to develop the Kukama belt decline barrel.

A total of 528 m were developed on the three-barrel decline system in the six months to December 31, 2019. This is ahead of plan. In addition, an on-reef raise connection was holed in the West 1 section of the mine to trial and optimise planned stoping methodologies.

Meanwhile, a conditional purchase agreement for the adjacent Maroelabult mine has been entered into with the current owners, Eastern Platinum. Eland management has assumed control over Maroelabult’s care and maintenance, and security operations. The impending conclusion of this purchase, together with the decision to use the MTB in the Kukama decline development has allowed replanning of the Eland development and mining plan. The planning programme will be concluded during the second half of the financial year and will inform a revised capital programme from next year.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
R&A Strategic Communications on behalf of Northam Platinum, tel +27 11 880 3924 or email northam@rasc.co.za.