JOHANNESBURG (miningweekly.com) – Remaining project capital of R964-million of the total of R4.4-billion in real 2026 terms is to be spent this year and next on Sibanye-Stillwater’s K4 platinum group metals (PGMs) project at Marikana in South Africa’s North West province.

The project is on track for steady-state production in 2033 and has a 48-year economic life, which bodes well for the community of the Rustenburg municipal area in particular. (Also watch attached Creamer Media video.)

Ramp-up of production at K4 began in the second quarter of 2022 and the operation is expected to employ 4 380 people when it reaches steady state.

Already 77% complete, K4 has a net present value of R17.6-billion and is described as “a high-return project” underpinned by extensive existing infrastructure.

Monthly rock break is projected to be at a rate of 39 000 m²/m and monthly reef hoisting 190 000 t/m, which equates at steady state to 21 000 four element (4E) ounces a month and 250 000 oz/y.

The reef mix of 55% Merensky and 45% upper group two is described as being key for the smelting strategy within Sibanye-Stillwater’s PGM segment.

This was spelt out by Sibanye-Stillwater executive VP mining operations Dawie van Aswegen, in his overview of the Johannesburg Stock Exchange-listed company’s South Africa PGM operations, which stretch from the town of Brits to the town of Rustenburg, in the lower section of the western limb of the PGM-rich Igneous Bushveld Complex.

Sibanye-Stillwater commenced its PGM business in mid-2016, when it acquired Aquarius Platinum.

Later that same year, it acquired the Rustenburg platinum mines from the then Anglo American Platinum, which is now Valterra Platinum.

K4 was acquired from Lonmin in 2019 and that acquisition marked the conclusion of Sibanye-Stillwater’s South Africa PGM acquisition strategy.

“The orebody is homogeneous, so what that means is that it stretches all 70 km from east to west, and it's got a constant dip of nine degrees from south to north,” Van Aswegen explained during his presentation covered by Mining Weekly.

Sibanye-Stillwater’s underground PGM business consists of six trackless mechanised operations and eight conventional operations, with 44 000 people employed in total - own employees as well as contractor employees.

From inception, the PGM operations have met annual guidance.

Owing to a closure at Marikana and a shaft reaching the end of its life at Kroondal, slight production reductions have been recorded but “this was partly countered by the gradual buildup of our K4 operations at our Marikana operations”, Van Aswegen pointed out.

Optimisation, restructuring, and a simple operating model resulted in a right-sized PGM segment, added Van Aswegen, who described operating cost per 6E ounce as being comparable to “the lowest of our peers”.

Increased stay-in-business (SIB) capital spend per 6E ounce is also said to rank below two of its peers.

On average, for the last couple of years, in the region of R4.5-billion had been spent on ore reserve
development (ORD) and SIB capital requirements, with continuous ORD being under way at conventional shafts and SIB per 6E ounce comparing well with peers since 2023.

However, a primary mining profile in steady decline – excluding projects – was displayed on the screen.

“If we look at our primary mining outlook, there’s a drop in profile but also very important to note is that this excludes our East 4, Siphumelele and Thembelani projects,” Van Aswegen pointed out.

But despite the declining profile, the cost forecast remains competitive, with all-in sustaining costs benefiting from by-product credits that include chrome.

In general, the SIB capital spending involves 9% of total operating cost for trackless mobile machinery operations, and 7% for conventional operations.

On the gradual move of the business down the cost curve, Van Aswegen reported: “From where we started in 2016, we’ve shown marked improvement down the curve and currently rank in quartile three of the cost curve, taking into consideration project capital being invested in K4 as well, but very determined that going into the future, we can move further down the cost curve, especially in view of new projects that are coming online. Also, taking into account that the majority of that will be trackless, we see ourselves moving down and being very competitive with world PGM producers.”

The integration of mining across contiguous boundaries is unlocking additional value, shaft connectivity is improving mine planning flexibility and sequencing, existing infrastructure and shared services are reducing production lead time, and new surface mining opportunities are considerable.