Located on the eastern limb of the Bushveld Complex, near the town of Steelpoort in South Africa’s Northern Province, the Winnaarshoek project has the potential for the development of a mine producing 175 000 ounces of platinum for at least 30 years.

Mineral rights
The project comprises the Winnaarshoek property as well as the mineral rights associated with adjacent properties Clapham, and portions of Driekop and Forest Hill. The Driekop mineral rights are subject to a 1.5% royalty payable to each of Anglo Platinum and the Lebowa Minerals Trust calculated on the value of the metals contained in the concentrate.

Major empowerment initiative
The project will be held 80% by Implats and some 10% each by Mmakau Mining (Pty) Limited and community-based investors from the Northern Province. Mmakau Mining is a well-established mining concern chaired by its founding shareholder, Bridgette Radebe.

Both Mmakau Mining and the community empowerment participants will be represented on the board of the Winnaarshoek project and Mmakau Mining will also be represented on the project’s executive committee. This arrangement provides a major black empowerment participation in a large-scale pgm project. It is expected that the financing for the empowerment transaction and the Northern Province empowerment participants will be finalised by the end of 2001.

Mining and processing
Extensive exploration drilling has been conducted since January 2001 and will continue for the remainder of the year and into next year, targeting specifically the shallower areas from the outcrop to 450 metres below surface. The exploration results will facilitate mine planning in respect of the underlying geological structure, grade, resources and reserves estimates and the rock engineering requirements for mechanised mining.

The mine will utilise a mechanised pillar and stall mining method with dense media separation to remove waste. The orebody will be accessed by means of two separate decline shafts, sunk on-reef from the outcrop position, situated approximately 1 300 metres apart on strike. Decline development will begin in mid-2002, with the first production from stoping by December 2002. Full mill production will be reached by 2004. Mining will first concentrate on the UG2 reef, with development on the Merensky reef commencing later.

The project has entered into a life-of-mine concentrate purchase agreement with IRS for the smelting, refining and marketing of its concentrate.

Capital cost for the project is estimated at some R1.6 billion spread over the first four years of the project. It is intended that this will be funded jointly from Implats’ internal resources and by the capital raised by the empowerment partners.

During the expected mine life over 30 years, the mine will employ some 1 500 people in a relatively remote and underdeveloped area. A number of environmental and social challenges remain and a dedicated team is in place to ensure that the positive influences of the mine balance any potential negative influences on the surrounding environment and communities.