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Kloof decline

This page is under review. For the latest information, please refer to our Integrated Annual Report 2018, released on 29 March 2019.

The feasibility study for the Kloof below infrastructure decline project was approved by the Board for project execution in November 2015. The life-of-mine plan yields approximately 0.57Moz of gold in addition to that currently planned without the project and extends Kloof’s operating life by 2034.

During 2016, the project programme and capital expenditure were re-assessed and a specialist mining contractor was appointed to deliver an accelerated project programme to first ore production. The Board approved project capital of R904 million to make provision for the mining contractor (an increase from the previously approved R757 million at a 2015 base inflated to 2017 terms).

The improved project programme generates earlier revenue and more than offsets the increased capital, and drives improved project financial metrics.

The reef-wide raises are scheduled to begin mid-2020 on 46 Level (as in the feasibility study) but, significantly, almost two years earlier on 47 Level, beginning in March 2021 (indicated as the end of 2022 in the feasibility study).

With project preparation and access development to the project site on 45 Level, R55 million was spent in 2015 and R121 million in 2016, including procurement of mechanised mining equipment and mobilisation of the mining contractor.

In 2017, the following advances were made at Kloof at a cost of R117 million (US$8.8m):

  • Delivered 181.6m of development
  • Delivered 247.1m of development in decline