6:59pm on Apr 01, 2020
Kroondal is a shallow underground PGM mining and concentrators located on the Western Limb of the Bushveld complex, 12 km east of the town of Rustenburg in the North West Province of South Africa, some 120 km north-west of Johannesburg. We operate Kroondal which is subject to a pooling and sharing agreement (PSA) with Anglo American Platinum (Amplats).
We acquired our interest in Kroondal in 2016. On a 50% attributable basis, as at 31 December 2018 Kroondal has 1.54 million 4E PGM oz and 1.79 million 6E PGM oz mineral reserves and 4.73 million 4E PGM oz and 5.57 million 6E PGM oz mineral resources.
Kroondal commenced operations in 1999 and has been progressively expanded since that time. We manage Kroondal under a 50/50 PSA with Anglo American Platinum (AAP). We acquired Kroondal on April 12, 2016 on the closing of our Rand US$4.3 billion all-cash offer for the then listed Aquarius Platinum Limited.
Kroondal is a shallow, mechanised mining operation, comprising five operating decline shafts and one shaft under care and maintenance. Currently, the UG2 reef is being mined at Kroondal, the Merensky reef having been mined out before our acquisition. The orebody comprises two chromite-rich mineralised seams, an upper UG2 Leader and a UG2 Main, separated by a one-meter pyroxenite zone. The two seams are mined together in a wide-reef underground operation. Mining takes place at depths between 250m and 500m below surface, utilising the bord-and-pillar mining method.
Ore is processed at Kroondal through two concentrator plants (K1 and K2) at a rate of approximately 590,000 tonnes per month. Additional spare processing capacity is available at a third plant, Marikana, currently under care and maintenance. Tailings from the K1 and K2 plants are piped to three adjacent tailings storage facilities and at a fourth tailings storage facility at Marikana, which has been recommissioned.
Kroondal is subject to a pooling and sharing agreement with Amplats, under which revenues, costs and capital expenditures are shared on a 50/50 basis and Amplats is responsible for all smelting, refining and marketing of output under a life of mine purchase of concentrate arrangement.
Kroondal has a new order mining right (registered in the name of Amplats) valid for the period from 17 October 2007 to 16 October 2022 in respect of a mining area totaling some 1,722 ha. One of the mining areas (the Kroondal extension) is mined under a royalty agreement with Amplats in respect of which Sibanye-Stillwater has exclusive mining rights.
Our South African operations mine from both the UG2 and the Merensky reefs of the Bushveld complex.
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