https://www.engineeringnews.co.za

K4 platinum group metals project, South Africa – update

3rd September 2021

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

Font size: - +

This article has been supplied.

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 sevenfold to R21-billion, with an IRR of 80% and a four-year payback at current 2021 spot metal prices.

Capital Expenditure
R3.9-billion over eight years. 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
Administration and project establishment started in the first half of 2021.

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.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 
Industrial Nozzles & Systems (Pty) Ltd
Industrial Nozzles & Systems (Pty) Ltd

Industrial Nozzles & Systems (Pty) Ltd (Est. 2000) exclusive representative in Southern Africa for LECHLER GmbH (Est. 1879) - Europe's leading...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.054 2.077s - 146pq - 2rq
Subscribe Now