Anglo American Platinum Limited |
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Overview and Locations
MINING OPERATIONS OVERVIEW
Anglo American Platinum Limited’s (Amplats) mining operations consist of managed mines, joint venture mines and associate mines across Southern Africa. These mines mine Merensky, UG2 and Platreef which are further processed by own managed concentrators, JV concentrators, associate concentrators and our own smelters and refineries.
KEY ACHIEVEMENTS
- Managed operations showed improved safety performance in 2010.
- Own and joint-venture mines had increased volumes and productivity.
- The increase in direct cash mining costs per equivalent refined platinum ounce for own operations was below inflation.
Equivalent refined platinum ounces produced by own mines and equivalent ounces attributable to Anglo American Platinum Limited from joint-venture and associate mines amounted to 2.484 million for 2010. This was 1% higher than the figure for 2009. Own mines produced 1,557,000 equivalent refined platinum ounces, substantially the same as in 2009. Western Limb Tailings retreatment increased production by 22%, to 41,800 ounces. Purchased equivalent refined ounces from third parties were reduced to 92,300, down by 20% from the 2009 total, while attributable ounces from joint-venture and associate operations increased by 6%, to 790,300 ounces. Equivalent refined ounces from the Twickenham Platinum Mine Project were reduced from 7,700 ounces in 2009 to 2,900 ounces in 2010.
Productivity from own and joint-venture operations increased to 7.06 m2 per operating employee for 2010, an average increase of 12% over the 2009.
The cash operating cost per equivalent refined platinum ounce ended 2010 on R11,730 per ounce, up 4% on the R11,236 reported for 2009.
The 4E built-up head grade reduced by 2%, to 3.23 g/t. The grade was affected by lower, planned grades from Mogalakwena Mine and by the treatment of increased lower-grade surface material. The 4E built-up head grade for Merensky Reef and UG2 Reef ore increased by 2% and 4% respectively.
Tonnes milled decreased by 2% to 42,242 Mt in 2010. This was a consequence of the successful conclusion of Anglo American Platinum Limited’s black economic empowerment (BEE) transactions with Anooraq Resources Corporation for Bokoni Platinum Mine (previously Lebowa Mine) in July 2009; and with Royal Bafokeng Holdings over the Bafokeng-Rasimone Platinum Mine in November 2010. Production from these operations is subject to purchase agreements, whereas previously some of or all the production was accumulated by Anglo American Platinum Limited. These two operations are equity accounted from the dates stated.
OWN MINES
OPERATIONAL REVIEW
Following the successful restructuring of Anglo American Platinum Limited’s own mines into nine individual operating mines the
previous year, 2010 was used to embed the changes associated
with the restructuring; and to improve a number of functional
processes in order to enable the own mines division to operate
more effectively and efficiently in future.
Tragically, seven of our employees lost their lives in 2010. In the light of this, it is encouraging to note that improvements in overall trends in safety performance were noticeable for the own mines division: the lost-time injury-frequency rate and the number of serious injuries were both lower than the previous year’s, showing a reduction of 16% and 19% respectively.
Own mining operations made good progress with the implementation of a number of key safety programmes to eliminate the two biggest risks associated with our business, namely fall-of ground (FOG) and transport-related incidents. To eliminate FOG-related incidents, the Fall of Ground Management (FOGM) system was rolled out. Aspects of this are an improved, faster underground response system to deal with problematic ground conditions and a virtual reality computer simulation programme – the Hazard Identification and Treatment System (HITS) – to train employees to identify such conditions. To reduce transport-related incidents, the Supplies, People and Ore Transport Management (SPOTM) system is being implemented at all own mines.
During 2010, own mines were faced with several interruptions in production resulting from safety stoppages, geological and geotechnical issues and challenges related to mine reorganisation. At Khomanani Mine, production volumes were reduced following the intersection of potholes on the UG2 Reef horizon at Khomanani No 1 shaft in the first quarter of 2010. An aggressive development programme has been implemented to re-establish mining around these potholes. Union Mine’s production was adversely affected at the decline section due to a revised mining method and shift cycle and the changeover to owner maintenance of equipment. Union Mine’s Richard shaft had high panel losses as a result of geotechnical and geological issues. Both these operations made steady progress in the fourth quarter of 2010 and are expected to increase their output in 2011. At Tumela Mine, production and tramming were adversely affected as a result of the 15 East shaft barrel failure and haulage failures at two different levels during the year. The mine has subsequently restored the 15 East shaft and re-organised its tramming arrangements on the affected levels.
Despite these challenges and the fact that three shafts in the Rustenburg mining area were on care and maintenance, own mines produced 1,557,000 equivalent refined platinum ounces in 2010 – in line with production in 2009. Moreover, equivalent refined production by the curtailed operations in 2009 amounted to some 72,000 ounces, indicating an effective increase from own mining operations of 65,000 ounces over production in 2009 on a comparable basis.
Tonnes milled increased by 2% to 31,189 million tonnes. However, the 4E built-up head grade decreased by 6% to 3.43 g/t. The lower grade was largely a consequence of the increase in the processing of low-grade surface ore sources; and mining at Mogalakwena Mine moving from the deeper, higher-grade Zwartfontein pit to the newer, shallower North pit.
In 2010, the number of operating employees was reduced by 15%. Contractor employee numbers were reduced by 61%. Two of our mines have converted to owner maintenance of equipment and further conversions are expected in 2011. Productivity from own mines increased by 10% between 2009 and 2010.
COSTS AND CAPITAL
Direct cash mining costs increased by 4% to R11.6 billion in 2010.
The direct cash mining cost per tonne milled increased by 2% to
R372 while the cost per equivalent refined platinum ounce
increased by 4% to R7,447.
Cash operating expenses (ie costs after allowing for off-mine, concentrating, smelting and refining activities) per equivalent refined ounce increased by 6% to R11,995.
CAPITAL EXPENDITURE
Capital expenditure for own mines during 2010 was R4 billion
(R5.3 billion in 2009), of which R1.8 billion was spent on projects,
R599 million on waste stripping at the Mogalakwena opencast mine
and R1.6 billion on stay-in business projects.
OUTLOOK
Equivalent refined production from own mines is expected to
increase in 2011, primarily as a result of the commissioning of Unki
Platinum Mine in Zimbabwe during January 2011, reopening of
Khuseleka 2 shaft and of further efficiency improvements on our
other mines.
JOINT-VENTURE AND ASSOCIATE MINES
OPERATIONAL REVIEW
Equivalent refined platinum ounces attributable to Anglo American Platinum Limited from joint-venture and associate operations were 6% above
the total for 2009, at 790,300 ounces. Increased production was
achieved at Kroondal Platinum Mine, Marikana Platinum Mine,
Bafokeng-Rasimone Platinum Mine and Bokoni Platinum Mine.
Mototolo Platinum Mine delivered the same production as in 2009,
while Modikwa Platinum Mine’s production was marginally lower
than the previous year’s.
Cash operating costs per equivalent refined platinum ounce were R10,760, up by 7% on the figure for 2009.
Anglo American Platinum Limited attributable capital expenditure for jointventure operations during 2010 was R602 million (R903 million in 2009), of which R305 million was spent on projects and R297 million on stay-in business projects.
OUTLOOK
Equivalent refined production from joint-venture mines is expected
to increase marginally in 2011.
