K4 platinum group metals project, South Africa
Name of the Project
K4 platinum group metals (PGMs) project.
Location
The North West, in South Africa.
Project Owner/s
Primary producer of platinum Sibanye-Stillwater.
Project Description
The K4 project is a tier one, low-cost, brownfield PGM expansion project at the Marikana mine operations.
The project entails the completion of the project, which was significantly advanced by previous owner Lonmin before it suspended the project, owing to capital constraints. The project is expected to reach sustainable production of about 250 000 oz/y platinum, palladium, rhodium and gold (4E) in about seven years.
About 11.5-million 4E ounces are expected to be produced over a 50-year life-of-mine, mining Merensky and upper group two reefs to a depth of 1 287 m.
Potential Job Creation
4 380 jobs will be created at steady state.
Net Present Value/Internal Rate of Return
The project has an estimated net present value (NPV), at a 15% discount rate, of R3-billion and an internal rate of return (IRR) of 33%, with a six-year payback using conservative project price assumptions. The NPV increases seven fold to R21-billion, with an IRR of 80% and a four-year payback at current 2021 spot metal prices.
Capital Expenditure
R3.9-billion. Lonmin invested R4.4-billion in the project before it suspended the development of the project.
Planned Start/End Date
The project was approved in February 2021 and is expected to be brought into production within 12 months.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Sibanye-Stillwater senior VP: investor relations James Wellsted, tel +27 10 493 6923 or email ir@sibanyestillwater.com.
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