JOHANNESBURG (miningweekly.com) – The planned replacement of a primary discharge end at JSE-listed Royal Bafokeng Platinum’s (RBPlat’s) Bafokeng Rasimone platinum mine’s (BRPM’s) concentrator directly impacted on the company’s production for the three months ended September 30, with tons milled decreasing by 13% year-on-year.

The concentrator had been offline for 15 production days.

The impact of the shutdown on metals-in-concentrate output was, however, minimised by an 11% improvement in built-up head grade, resulting in a decrease in platinum, palladium, rhodium and gold metals-in-concentrate produced of only 5%, the company stated.

Meanwhile, a total of 90 218 t of Merensky ore had been stockpiled ahead of the concentrator as a result of the shutdown and this would be treated within the next three to four months.

Further, while the cash operating cost per platinum ounce delivered decreased by 2% year-on-year, from R10 389/oz to R10 197/oz, the 13% and 5% respective reduction in milled volumes and 4E metals-in-concentrate production, brought about by the replacement of the mill discharge end, resulted in the year-on-year increases in cash unit cost per ton milled and platinum ounce produced being exaggerated.

Cash unit cost per ton milled and per platinum ounce produced increased by 19% and 9% respectively, compared with the same period in 2012.

Meanwhile, the company’s capital expenditure (capex) for the period under review was 27% lower than that of 2012 – in line with the construction programme of RBPlat’s major projects.

Expansion capital decreased by 17%, as a result of variations in project work package requirements between the comparative projects, while replacement capex decreased by 41% owing to the completion of the BRPM Phase 2 project.

Stay-in-business expenditure was 43% lower owing to the completion of projects related to establishing independence from Anglo American Platinum.

PROJECTS
RBPlat said its Styldrift 1 project expansion was 34.6% complete, against a plan of 33.7%.

Shaft sinking operations had progressed to a depth of 708 m at the main shaft and 642 m on the services shaft. Lateral development on all three levels had also advanced, with 1 128 m having been developed during the quarter, bringing total lateral development for the year to date to 1 731 m.

Further, the piloting of the first raise bore ventilation shaft started in August with a total of 310 m having been piloted by the end of the quarter, with raise boring planned to start in November. Project surface construction continued to progress according to plan.

The project’s capex for the quarter amounted to R177.4-million, which was in line with the budget, with forecast expenditure for the year remaining at R728-million.

Project expenditure to date amounted to R2.3-billion, with total commitments of R2.86-billion.

Meanwhile, the BRPM Phase 3 project, which involved the extension of the North shaft Merensky decline from 11 level down to 15 level at the mine boundary, was ahead of schedule at 52% complete against a plan of 48%.

The project also remained below budget, with expenditure for the quarter having amounted to R40.2-million and to R542.9-million for the project to date.