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Kroondal is situated in the Rustenburg Local Municipality at latitude 25° 42' S and longitude 27° 20' E near the town of Rustenburg, in North West Province, South Africa, approximately 120km north-west of Johannesburg and about 120km west of Pretoria (Tshwane).

Mine location

An established, shallow, mechanised platinum group metal (PGM) mine exploiting the UG2 Reef on the western limb of the Bushveld Complex, Kroondal consists of five operating shafts and one shaft under care and maintenance (the former Marikana mine). The deposit is accessed from surface approximately 1,200m above mean sea level using decline systems and the bord-and-pillar mining method. The lowest mining level at the Kwezi Shaft is 370m below surface (830m above mean sea level) and at K6 it is 340m below surface (860m above mean sea level). At Simunye Shaft, the lowest mining level is 570m below surface (630m above mean sea level) and at Bambanani Shaft Ackerman section the current lowest depth is 470m below surface (730m above mean sea level). At Kopaneng Shaft in Mining Unit 3, the lowest mining level is at 550m below surface (650m above mean sea level).

Two concentrator plants (K1 and K2) process run-of-mine material and additional processing is available if required at a third plant, at the Marikana mine, which is currently under care and maintenance.

Kroondal is managed and operated in terms of a 50:50 pool and share agreement (PSA) with Anglo American Platinum. Kroondal mines the reserves, including those at Marikana which are accessed via Kroondal’s mining infrastructure, contained within the relevant mining rights. These mining rights are registered to Anglo American Platinum which receives a 50% share of production and financial outcomes as well as a royalty payment for the Kroondal extension.

All legal aspects and tenure are in order.

Key statistics

Ore milled (underground) Mt 2.7
Plant head grade g/t 2.48
Recoveries % 81.7
4E PGM produced 000oz 179
4E PGM sold kg 5,543
Revenue R/kg 355,999
Average PGM (4E) basket price R/oz 12,409
  US$/oz 845
Operating cost R/t 619
  $/t 42
  R/4Eoz 9,481
  $/4Eoz 646
Operating profit Rm 283.5
Operating margin % 14
Capital expenditure – total Rm 175.8


Hoisting and production capacities

5yr planned
1 (Kwezi, K6) 2 235 280
2 (Simunye, Bambanani) 2 248 260
3 (Kopaneng) 1 124 160

Plant capacities

capacity (ktpm)
factor (%)
K1 250 310 81.7 UG2
K2 290 325 79.6 UG2

Performance in 2016

Total operation

During the period of ownership*, production was solely from underground. The volumes mined were 570,780m² at a yield of 2.48g/t. Tonnes milled were 5.464Mt, which produced a total of 357,200oz 4E PGM (50% attributable to Sibanye). Primary development during the period was 11,220m. Operating cost from underground was R1,690 million, generating operating profit of R283.5 million (before amortisation and depreciation). Total capital expenditure was R175.8 million with a net operating profit of R147.3 million (after amortisation and depreciation).

* The period of ownership by Sibanye was from April to December 2016.

Future focus

In the coming year, Sibanye will focus on consolidation and optimisation of operational performance as well as improving utilisation of existing infrastructure.