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REVIEW OF OPERATIONS

Aquarius attributable production for FY2012 totalled 411,398 PGM ounces, a decrease of 14%, with interests in Kroondal and Mimosa together accounting for two-thirds of this Kroondal, 41% (167,425 PGM ounces) and Mimosa, 26% (105,448 PGM ounces). In South Africa, the decline in production was caused by operational problems resulting from the implementation of the new hangingwall support regime, labour relations issues at Everest and excessive safetyrelated stoppages during the rst half of the year. In Zimbabwe, production at Mimosa exceeded nameplate capacity of 200,000 4E ounces yet again. Owing to the challenging operating and economic conditions currently prevailing, Marikana and Everest were placed on care and maintenance just prior to year-end. Post year-end, the retreatment facility, CTRP, was also placed on care and maintenance.

KROONDAL (P&SA1)
The Kroondal Platinum Mine (Kroondal), Aquarius largest mine, is on the western limb of the Bushveld Complex, not far from Rustenburg, in North West Province, South Africa. It is located up-dip of Rustenburg Platinum Mines (RPM), Anglo Platinums agship operation. Kroondal, which mines the UG2 reef in the Kroondal and Townlands orebodies, has four operating decline sections Kopaneng, Simunye, Bambanani and Kwezi as well as two concentrator plants (K1 and K2) with a combined monthly processing capacity of 570,000 tonnes. A fth decline shaft, K6, is currently under construction. Kroondal is managed in a 50:50 pool and share agreement (P&SA1) with Anglo Platinum.

Kroondal Key statistics


FY2012 Operational Tonnes milled Average head grade Recoveries Cost per PGM
(1)

FY2011 6.24 2.59 80 892 6,273 1,454 10,222 7.03 4,868 243,991 123,604 45,369 1,982 414,946 507,646 207,473 268 186 58 29

FY2010 6.18 2.59 79 761 5,769 1,227 9,301 7.58 4,530 240,441 121,572 44,533 2,024 408,570 499,400 204,285 230 156 54 13

Mt g/t % ounce produced $/oz R/oz $/oz R/oz R/$

5.61 2.38 78 1,130 8,748 1,322 10,236 7.74 5,371

Price received per PGM ounce R/$ exchange rate Total no of employees (including contractors) Total production in concentrate Platinum Palladium Rhodium Gold Total PGM production Total PGM production (5PGM+Au) Attributable PGM production Financials attributable Revenue (2) On-mine cash cost Gross prot/(loss) Capital expenditure
(1) (2)

oz oz oz oz oz oz oz $m $m $m $m

197,360 99,766 36,112 1,613 334,850 408,449 167,425 180 189 (32) 32

Unless otherwise specied, PGM refers to 3PGM + Au Net of foreign exchange sales variance

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Safety
Regrettably, there were two fatalities at Kroondal during the nancial year. During October 2011, Mr Hennie Otto was fatally injured in a lifting and equipment handling incident at the K1 processing plant, and on the 17 April 2012, Mr Tomas Ubissi, a utility vehicle operator, passed away in a fall of ground accident at the Simunye shaft. The DIIR per 200,000 hours worked deteriorated to 1.20 from 0.77 in FY2011, a result of the employment of additional rock drill operators during the year. The new support system currently being installed will expose the rock drill operator to reduced risks. Safety training continued following the compilation of safety procedures to address the major safety risks identied. These procedures are aimed at mitigating these risks. A committee comprising both Aquarius representatives and union members agreed and signed off on all of these procedures. Operator training on the new procedures was ongoing through the year. Campaigns to promote behaviour-based safety and awareness were re-energised so as to focus employee mindsets on the importance of safety. Following the rockfall accident at Marikana in July 2010, AQPSA investigated and began the implementation of revised hangingwall support systems and methodologies to improve safety underground. These new systems are being implemented at all four of Kroondals shafts. Installation of the revised support standard which supports 100% of the potential fallout height in the hangingwall began in March 2011.

align its interests with a positive effect on unit costs and cash ow generation. Production at Kroondal is expected to have normalised at full capacity by December 2012. Unlawful strike action post year-end occurred intermittently at Kroondals Kwezi Shaft during July, accompanied by incidents of intimidation and violence as a result of the continuing tensions between rival mining unions on the western limb of the Bushveld. This strike has now been resolved, but industrial relations in the Rustenburg district remain strained.

Financial performance
Kroondal attributable revenue declined in Rand terms to R1,384 million for the year (FY2011: R1,869 million) in Dollar terms, attributable revenue declined to $180 million, a function of weaker production and a weaker Dollar price received. The Rand price realised per 4E ounce was R10,236 for the year. Operating costs increased by 39% to R8,748/oz at Kroondal for the period, due largely to the impact of the xed cost base on lowerthan-optimal mining volumes, costs associated with the new safety measures and inationary factors linked to the price of electricity, labour and steel.

Operating performance
Attributable production at Kroondal fell by 19% to 167,425 PGM ounces, which was equivalent to 41% of total attributable group production. Production was hampered for most of the year by the number of Section 54 safety stoppages issued and the implementation of the revised hangingwall support system. This revised system has been approved by the Department of Mineral Resources (DMR). The implementation of the new hangingwall support regime required the manual drilling of support holes during much of the year. The slower-than-planned installation of support thus interfered with the blasting cycle as did the change in the mining orientation which required the establishment of additional face at the expense of head grade. Both of these issues are presently being resolved, with a return to optimum mining orientation and a hybrid hangingwall support regime underway. Plans were put in place to limit disruptions, producing positive results as evidenced by the 7% increase in production reported for the fourth quarter of the year. The project to turnaround operations at Kroondal also includes the change to owner operation, as announced post year-end. This will give Aquarius management full control of operational costs and will also enable management to fully

Owner operation will ensure maximum cost control and exibility

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