Pandora Platinum Mine

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ATTRIBUTABLE PROFIT
(2011: R47)
R20m

    2012 2011
Safety      
  Fatalities   0 0
  LTIFR   0.71 1.53
Financial      
  Anglo American Platinum attributable profit/(loss) before tax (Rm)   20 47
  Net cash distributions/(cash calls) (Rm)   107 14
Mineral Resources inclusive of Ore Reserves      
  UG2  

189.8 Mt arrow 28.4 4E Moz

JV partners  

 

Eastern Platinum Limited(a subsidiary of Lonmin plc)  

(42.5%)

Bapo-Ba-Mogale Mining Company  

(7.5%)

Mvelaphanda Resources  

(7.5%)


MINE OVERVIEW

Rustenburg Platinum Mines Limited has a 42.5% interest in the Pandora Joint Venture. The other partners are Eastern Platinum Limited (42.5%), a subsidiary of Lonmin plc, the Bapo-Ba-Mogale Mining Company (7.5%) and Mvelaphanda Resources (7.5%). The mine is situated in the province of North West in South Africa, approximately 40 kilometres east of the town of Rustenburg in Lonmin's Marikana mining area. It forms part of the South-western Limb of the Bushveld Complex.

The current mine infrastructure, which belongs to Lonmin, consists primarily of one decline shaft system, namely the E3 decline, which mines UG2 ore exclusively. Pandora is a shallow, conventional underground mine with current workings between surface and 300 metres below surface.

The current life-of-mine (LoM) plan consists of a Mineral Resource (exclusive of Ore Reserves) of 24.9 million 4E ounces and an Ore Reserve of 2.3 million 4E ounces.

KEY ACHIEVEMENTS

  • Pandora achieved 2 million fatality-free shifts on 10 February 2012 (this was attained over four years of mining).
  • The extension of the decline from 7 to 9 level was handed over to production crews in 2012.

OPERATIONAL REVIEW

Pandora Joint Venture had no fatalities in 2012 (as in 2011). The lost-time injury-frequency rate (LTIFR) improved by 54%, from 1.53 in 2011 to 0.71 in 2012.

Production at Pandora was heavily impacted by the labour unrest at Lonmin's Marikana operations in the second half of 2012. The unrest subsided in early October 2012 and normal operations started ramping up later in the month after a safe start-up had been ensured.

There are no equivalent refined platinum ounces attributable to Anglo American Platinum in the case of Pandora, as all the ore is sold to Western Platinum Limited (a subsidiary of Lonmin plc). Platinum production amounted to 39.1 koz in 2012, an increase of 9% over production in 2011.

FINANCIAL REVIEW

Pandora is equity-accounted for at 42.5%. Anglo American Platinum ' attributable profit before taxation was R20 million for 2012 (2011 profit before taxation: R47 million). Net cash distributions for 2012 totalled R107 million from Pandora (2011 cash distributions from Pandora: R14 million).

PROJECTS

The Plan 4 project to extend the decline from 7 to 10 level was undertaken to maintain the 60 ktpm production of UG2 ore at the existing E3 decline shaft. The project's execution remains on track, with completion expected in the second quarter of 2013.

Feasibility studies are under way to establish the optimal extraction for the deeper reserves in E3 shaft, as well as adjoining shallow and deep reserves.

OUTLOOK

Production in 2013 is expected to increase as a result of the new level (9 level) coming into production.