HISTORY
Platinum was first discovered in the area by renowned explorer Hans Merensky on the nearby farm Maandagshoek (now Modikwa Platinum) in the 1920’s. In June 1998 Implats entered into an arrangement to acquire the Winnaarshoek property from Platexco, a Canadian based company. The mineral rights to portions of the adjacent farms of Clapham and Forest Hill and a sub-lease to Driekop were subsequently acquired from Anglo Platinum in exchange for Hendriksplaats (part of Modikwa Platinum) so consolidating the Marula mine area. The exploration programme was then expanded and some 750 surface boreholes were drilled. The establishment and development of the mine, requiring considerable investment from Implats in both infrastructure and environmental protection measures, commenced in October 2002.
GEOLOGY
Both the Merensky and UG2 Reefs are present and sub-outcrop in the Marula mining right area. The reefs dip generally in west-south-west direction at about 13 degrees with a vertical separation of some 400 metres between them. While one prominent dyke and a dunite pipe are present, there is minimal faulting on the property.
MINING
Current mining activities target the UG2 Reef only which is accessed via two declines, Clapham and Driekop, which are situated 1.3 km apart . The Driekop Shaft exploits UG2 by means of a hybrid mining method, whilst as Clapham Shaft both hybrid and conventional methods are utilised.
Marula has experienced a number of operational difficulties since FY2002 and has been unable to achieve its production targets as the initial mine plan based on a trackless mechanised bord-and-pillar mining method proved inappropriate due to geological conditions, primarily the rolling of nature of the reef.
A detailed strategic review undertaken in the last quarter of FY2011 evaluated mining parameters and project status. As a consequence, production at the operation will be maintained at the current rate of 70,000 ounces of platinum per annum for the next year to enable the completion of the conversion project. Marula has right-sized its cost-based to the current ounce profile. A further strategic review will be undertaken this year which will assess the status of the mine.
METALLURGY
The metallurgical plant which was commissioned in February 2004 consists of a concentrator and a dense media separation plant (DMS). The DMS is currently mothballed due to low throughput. The plant has a capacity of 6,000 tonnes per day, capable of coping with current mine production. Concentrate is transported by road to Impala Platinum’s Mineral Processes in Rustenburg in terms of a life-of-mine offtake agreement with Impala Refining Services (IRS).
BLACK ECONOMIC EMPOWERMENT
Black economic empowerment forms a key component of the Marula operation and our partners together own 27% of the company. Each of the following parties hold a 9% stake in the business:
- The Marula Community Trust ensuring sustainable benefit flows to the local community over the life of the mine and beyond;
- Tubatse Platinum, a broad based HDSA empowerment consortium from local business; and
- Mmakau Mining, an established mining entity.
Implats, as the largest stakeholder, brings technical, managerial, financial and operational expertise to the mine.
SUSTAINABLE DEVELOPMENT
In addition to the BEE equity stakes in Marula, the company is determined to maximise the benefits of the mine for the community even further. Preference is given to local contractors and suppliers of goods and services, and the social investment strategy focuses on addressing the urgent needs identified in the local communities. Typical projects include multi-purpose information centres, school upgrades and maintenance, educational support systems, the provision of roads, water, electricity and renewable energy projects and upgrading of clinics and investments in healthcare support infrastructure and systems.Makgomo Chrome is a joint vanture that assists local communities with the extraction and marketing of chrome from tailings.
| Marula - key statistics |
|
|
|
|
|
|
|
|
|
|
|
FY2012 |
FY2011 |
FY2010 |
FY2009 |
FY2008 |
 |
|
|
|
|
|
|
|
|
| Production ex mine |
|
|
|
|
|
|
|
|
Tonnes milled |
(000 t) |
|
1,579 |
1,542 |
1,545 |
1,574 |
1,455 |
|
Headgrade (5E + Au) |
(g/t) |
|
4.18 |
4.39 |
4.26 |
4.29 |
4.44 |
| |
Platinum in concentrate |
(000 oz) |
|
69.1 |
70.6 |
70.1 |
74.0 |
70.4 |
|
PGM in concentrate |
(000 oz) |
|
182.2 |
185.7 |
184.6 |
194.4 |
185.7 |
| |
|
|
|
|
|
|
|
|
| Mining cost of sales |
(Rm) |
|
(1,277) |
(1.341) |
(1,141) |
(932) |
(777) |
| |
Mining operations |
(Rm) |
|
(961) |
(1,034) |
(876) |
(700) |
(591) |
|
Concentrating operations |
(Rm) |
|
(155) |
(152) |
(146) |
(132) |
(101) |
|
Other |
(Rm) |
|
(161) |
(155) |
(119) |
(100) |
(85) |
| |
|
|
|
|
|
|
|
|
| Total cost |
(Rm) |
|
1,116 |
1,186 |
1,022 |
832 |
692 |
| |
per tonne milled * |
(R/t) |
|
721 |
773 |
645 |
551 |
436 |
|
|
($/t) |
|
93 |
110 |
85 |
61 |
60 |
| |
per platinum ounce in concentrate * |
(R/oz) |
|
16,151 |
16,884 |
14,208 |
11,730 |
9,020 |
|
|
($/oz) |
|
2,086 |
2,401 |
2,401 |
1,880 |
1,291 |
| |
|
|
|
|
|
|
|
|
| Financial ratios |
|
|
|
|
|
|
|
| |
Gross margin |
(%) |
|
(6.7) |
3.2 |
(1.0) |
(47.7) |
57.5 |
| |
|
|
|
|
|
|
|
|
| Capital expenditure |
(Rm) |
|
223 |
242 |
281 |
398 |
345 |
|
|
($m) |
|
29 |
34 |
37 |
44 |
48 |
| |
|
|
|
|
|
|
|
|
| Safety |
|
|
|
|
|
|
|
| |
LTIFR (per million man hours worked) |
|
|
11.46 |
9.19 |
9.39 |
5.21 |
1.24 |
|
FIFR (per million man hours worked) |
|
|
0.13 |
- |
- |
0.13 |
0.37 |
| |
|
|
|
|
|
|
|
|
| Labour complement (including contractors) |
|
|
3,708 |
4,209 |
3,968 |
3,510 |
3,591 |
|
|
|
|
|
|
|
|
|
*Excluding share-based compensation |
