Name and Location
Styldrift I expansion project, North West, South Africa.

Client
Royal Bafokeng Platinum, or RBPlat (67%), and Anglo American Platinum (33%).

Project Description
The Styldrift project area, adjacent to the existing Boschkoppie mining area, is located about 5.5 km from the existing Bafokeng Rasimone Platinum Mine (BRPM).

The project will exploit one of the last major Merensky mining blocks on the Western Bushveld.
Styldrift I will deliver an underground operation, which will be accessed through a twin vertical shaft system, with the main shaft being sunk to 758 m and the services shaft to 723 m.

The configuration of the main shaft will allow for a single-deck personnel-and-material cage compartment that can transport 185 people; a cage counterweight compartment; two Merensky reef skip compartments, each designed to accommodate a 22 t skip; and two future skip compartments, each accommodating a 13 t skip.

The services shaft will comprise a personnel-and-equipment cage compartment that can transport 22 people, and a cage counterweight compartment.

Four winders will be used during the project construction phase and three during the production phase. The height of the main shaft headgear is 58.6 m and the service shaft 41.3 m.

Concentrator capacity will be 2.76-million tonnes a year.

Initially, wide-reef trackless mining methods will be used, followed by a combination of wide-reef trackless mining and narrow-reef conventional mining methods.

The mine will process 230 000 t/m of Merensky reef and 20 000 t/m of waste at steady state.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project is estimated at R11.01-billion.

Duration
Steady-state production is expected in the first quarter of 2019.

Latest Developments
Construction-related activities and related capital expenditure (capex) at the Styldrift I project were scaled down in the quarter ended September 30, with work expenditure aligned to excess cash flows generated from BRPM and revenue generated from on-reef development at Styldrift.

During the quarter, 12 000 t were delivered to the BRPM concentrator from on-reef development. The shaft now has four operating teams developing on reef, which are expected to deliver 40 000 t of ore during the remainder of 2015.

The development and construction of ventilation shaft No 1, Silo 2 and appropriate workshop infrastructure is being advanced in the second half of 2015, as this is a prerequisite to delivering an estimated 400 000 t of on-reef development and sustainably meeting the build-up to 50 000 t/m during 2016.

The focus during 2016 will be on enhancing the ability of Styldrift to ramp-up beyond 50 000 t/m by continuing with on-reef development to create face flexibility and progressing the following key infrastructure:
– 642 level footwall development, decline and ore-pass installation;
– services shaft equipping; and
– Settler 1 and Silo 4.

The concentrator upgrade to 250 000 t/m, which was previously intended to be completed during the third quarter of 2015 has been deferred until the first quarter of 2016, as the existing treatment plant facilities are adequate to treat all ore volumes arising during 2015.

Capex for the quarter was R370-million, which was 40% higher than the same period in 2014, but was 32% lower than expenditure in the second quarter of 2015.

Key Contracts and Suppliers
WorleyParsons (main project engineering, procurement and construction management contractor); Anglo Technical Division (mine shaft design); Mining & Engineering Technical Services, or Mets (services shaft headgears); Shaft Sinkers (main and services shafts and associated works until January 2015, when RBPlat terminated its contract); Louwill Engineering (main and services shafts’ headgears and winder house structural manufacturing and erection); FLSmidth Minerals (main shaft personnel and material winder mechanical portion); Actom – formerly Alstom Industry (main shaft personnel-and-material winder electrical portion); Coilmech (service winder mechanical and electrical portions); Stefanutti Stocks Civils Wramatshe joint venture (civils Phase 2 contract – main bulk surface civils); Sarens (cranes) and Sandvik Mining (underground production trackless equipment).

On Budget and on Time?
Capital expenditure for the quarter ended September 30 amounted to R340-million, which is 40% higher than the same period in 2014, but is 32% lower than expenditure in the second quarter of 2015.

Contact Details for Project Information
RBPlat executive corporate affairs Mpueleng Pooe, tel +27 10 590 4515 or email mpueleng@bafokengplatinum.co.za; or investor relations manager Lindiwe Montshiwagae, tel +27 10 590 4510 or email lindiwe@bafokengplatinum.co.za.
WorleyParsons, tel +27 11 218 3000.
Mets, tel +61 8 9421 9000 or fax +61 8 9325 8311.
Louwill Engineering, tel +27 11 818 5186, fax +27 11 818 5185 or email mail@louwill.co.za.
FLSmidth Minerals, tel +45 36 18 10 00, fax +45 36 44 11 46 or email info@flsmidth.com.
Actom, tel +27 11 820 5111 or fax +27 11 820 5100.
Coilmech, tel +27 11 452 4063, fax +27 11 452 6104 or email info@coilmech.co.za.
Stefanutti Stocks, tel +27 11 571 4300, fax +27 11 571 4370 or email holdings@stefstocks.com.
Sarens, tel +27 11 861 3800, fax +27 11 861 3899 or email info@sarenssa.co.za.
Sandvik Mining EMEA business development manager Bjorn Gohre, tel +27 11 570 9676.