Name of the Project
Styldrift I expansion project.

Location
South Africa’s North West province.

Client
Royal Bafokeng Platinum (RBPlat).

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

The project will exploit one of the last major shallow Merensky mining blocks on the Western Bushveld.

Styldrift I will deliver an underground trackless operation, which is accessed through a twin vertical shaft system, consisting of the Main shaft being shaft sunk to 758 m and the Services shaft to 723 m.

The configuration of the Main shaft has been equipped and commissioned and allows 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 capable of 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. Equipping the services shaft started in June 2016.

Potential Job Creation
Not stated.

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 2020.

Latest Developments
RBPlat’s approach, given the current PGM market, has remained one of prudently aligning capital spend and its timing with project progress requirements to maintain a healthy balance sheet without impacting on its ability to meet the project’s ramp-up schedule.

Where possible, noncritical path project work has been deferred. This includes items such as additional access roads, surface parking, stores, the training centre, change house upgrades and noncritical store items among others.

Lower yearly capital escalation and contingency expenditure has also contributed to capital expenditure being less than originally forecast.

RBPlat made steady progress on all key construction activities in the year to December 31, 2017, including:

• the construction of permanent the trackless workshop and ancillary service bays on 600 level,
• conveyor belt construction on 600 and 642 levels,
• permanent piping installations on 600, 642 and 708 levels,
• services shaft equipping,
• ventilation shaft No 3 raiseboring,
• construction of the No 3 and 4 silos,
• construction of the settler No 1 slipe and line activities overland belt.

As of year-end 26, mining and construction crews were operational underground, with specialised construction work outsourced.

Capital expenditure on the project for the period under review amounted to R2.01-billion, bringing total capital expenditure for the Styldrift I project to date to R8.46-billion.

Key Contracts and Suppliers
WorleyParsons (main project engineering), 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), the Stefanutti Stocks Civils Wramatshe joint venture (civils Phase 2 contract – main bulk surface civils), Sarens (cranes), Sandvik Mining (underground primary trackless fleet), Fermel (secondary trackless fleet), Master Drilling, Murray & Roberts and Redpath (vertical raiseboring), and Howden (surface fan supply and installation).

All procurement and construction management are currently owner-managed.

On Budget and on Time?
Not stated.

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 4517 or email lindiwe@bafokengplatinum.co.za.