| OPERATIONS |
OVERVIEW AND
LOCATIONS
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MINING OPERATIONS
PRODUCTION
Production of equivalent refined platinum production (metal in
concentrate less assumed smelting and refining losses) from mining
operations owned by Anglo Platinum, its attributable share of
joint-venture mines and purchase of concentrate agreements, was 2.465
million ounces for the year, compared with 2.471 million ounces in 2007.
Factors contributing to the marginal decrease include:
- the disruption of operations at Amandelbult
Mine, caused by a major flood;
- the suspension of operations to rehabilitate shaft steelwork
at the Turffontein shaft of the Rustenburg Mine during the first
half of the year;
- an overall expected reduction in built-up head grade;
- severe electricity supply constraints in January and the
associated ramp-up period when supply resumed; and
- safety- and labour-related stoppages.
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Lower production volumes were recorded at Rustenburg, Amandelbult,
BRPM, Mototolo, Lebowa and Western Limb Tailings Retreatment.
The reductions resulting from production disruptions were offset by the
increase in purchased ounces from Xstrata South Africa’s new Eland
Platinum Mine, which began delivery to Anglo Platinum in December 2007,
and by increased production from Mogalakwena, Union, Modikwa,
Twickenham, Marikana and Kroondal.
The aggregate immediately available ore reserves for managed operations
increased by 13%, to 16.1 months at 31 December 2008, as a result of the
continued focus on equipping and redevelopment activities.
Mining operations are taking place at the Pandora Joint Venture, in
which Anglo Platinum has a 42.5% stake, where an ore sale agreement is
in place with Western Platinum Limited.
Pandora delivered 905,444 tonnes of ore during 2008, which yielded some
76,439 equivalent refined platinum ounces, in line with the 76,622
ounces in 2007. This production is excluded from Anglo Platinum’s
reported production. |
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COSTS
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Total cash on-mine costs for mining and retreatment operations
increased by 26%, or R4.1 billion to R20.2 billion in the year, owing to
substantial above-inflation pressures experienced in labour and
contractor rates as well as key commodity input costs, including steel,
fuel, chemicals, explosives, support and grinding media. As a result,
the cash on-mine cost per equivalent refined platinum ounce (in respect
of Anglo Platinum’s own mines plus its share of joint ventures)
increased by 37% to R9,892 per ounce in 2008. The cost per tonne milled
rose by 22% to R475.
Total capital expenditure on the Anglo Platinum mining and concentrator
operations and on its share of the joint-venture mines in 2008 was R10.1
billion, up 9% from R9.3 billion in 2007. |
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OUTLOOK
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The key focus areas in 2009 for mining operations include: the
achievement of the Group target of 2.4 million refined ounces with
revised capital funding; the reduction in costs through asset
optimisation initiatives; the reduction in contractor employees, in line
with revised production levels; and actively managing the prices of key
commodity input costs and the improvement of efficiencies from own
enrolled employees.
Structures at Rustenburg Mine and Amandelbult Mine are under review. The
mines will be restructured into smaller units to allow for more focused
management. Marginal mines will be subject to continual reviews, and
appropriate action will be taken to mitigate costs and increase cash
generation. |
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MECHANISATION AND NEW MINING TECHNOLOGIES
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| The focus on mechanisation and new mining technologies includes the
modernisation of ancillary mining functions and the appropriate
mechanisation of conventional methods in stoping activities and
elsewhere. |
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Modernisation
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Several technologies are being rolled out at the mines, to modernise
conventional mining and thereby improve safety and productivity. These
include the following:
- Hydro-powered drill rigs for flat and inclined development and
man-free box holing.
- The electro-hydraulic man-free box holing is being rolled out
together with hand-held electric rock drills at selected sites.
- Ongoing modifications are being made to develop a more powerful
electric rock drill to apply effectively in development ends where
longer rounds are drilled.
- Trials continued with the radio remote controlled hydraulic scraper
winch, with further modifications under way to improve communication
linkage.
- A centralised blasting system has been successfully commissioned at
a pilot site at Union’s Spud shaft. The rollout of the same system has
started at Rustenburg Mine.
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| The focus for 2009 is to optimise performance through the rollout of
applied new technologies to the conventional mining environment. |
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Mechanisation
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Underground trials began at Amandelbult Mine, with an extra
low-profile equipment suite that was developed specifically for the
semi-steep dipping mine. Encouraging progress has been made to date.
Extra low-profile (down to a 1.2 metre stope width) and ultra
low-profile mechanised mining present the most significant opportunities
for full mechanised mining of narrow tabular ore deposits. Continual
efforts are made to develop appropriate technology that can address
safety, productivity and the cost of full trackless mechanised mining at
steeper dips and stope widths (down to 90 centimetres).
Further progress has been made with continuous mining methods, including
rock cutting. Trials using the activated drum system continued during
2008 and trials and modifications will continue during 2009. The reef
mole (RM900) is undergoing design changes, with underground trials
planned for 2009. The oscillating disc cutter, which is a PlatTech
collaborative research project, was trialled on a test block on surface
with modifications, and underground trials are scheduled to start during
2009. |
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Mechanised skills development
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| Appropriate skills development is recognised as a key success factor
in the effective rollout of trackless mechanised mining. Progress has
been made with the development of the necessary mechanised training
centres at both Twickenham and Waterval mines which will cater for the
Eastern Limb and the Western Limb respectively. |
