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 Reef and the underlying UG2 Reef 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 declines were sunk on-reef from the outcrop at a minor dip of 9.5 degrees, each with three portal entries.
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 opstation will be maintained at the current rate of 70,000 ounces of platinum per annum for the next two years to enable the completion of the conservation project. Marula has right-sized its cost-based to the current ounce profile. A further strategic review will be undertaken in FY2013 which will assess the status of the mine and examine the potential to expand it by exploiting the deeper UG2 and the yet untouched Merensky resources.
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 thus given to local contractors and suppliers of goods and services. Local economic development projects include infrastructural development at the Makgamathu and Mohlalamorudi Secondary Schools, an agricultural project in the Tubatse municipality, water and electricity supply to 1,900 households over the next five years, community sports initiatives and assistance with a project to extract and market chrome from tailings.
| Marula - key statistics |
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FY2011 |
FY2010 |
FY2009 |
FY2008 |
FY2007 |
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| Production ex mine |
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Tonnes milled |
(000 t) |
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1,542 |
1,545 |
1,574 |
1,455 |
1,450 |
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Headgrade (5E + Au) |
(g/t) |
|
4.39 |
4.26 |
4.29 |
4.44 |
4.09 |
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Platinum in concentrate |
(000 oz) |
|
70.6 |
70.1 |
74.0 |
70.4 |
65.2 |
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PGM in concentrate |
(000 oz) |
|
185.7 |
184.6 |
194.4 |
185.7 |
171.4 |
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| Mining cost of sales |
(Rm) |
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1.341 |
1,141 |
932 |
777 |
650 |
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Mining operations |
(Rm) |
|
1,034 |
876 |
700 |
591 |
472 |
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Concentrating operations |
(Rm) |
|
152 |
146 |
132 |
101 |
100 |
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Other |
(Rm) |
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156 |
119 |
100 |
85 |
78 |
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| Total cost |
(Rm) |
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1,186 |
1,022 |
832 |
692.0 |
572.0 |
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per tonne milled* |
(R/t) |
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773 |
645 |
551 |
476 |
395 |
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($/t) |
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110 |
85 |
61 |
66 |
55 |
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per platinum ounce in concentrate* |
(R/oz) |
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16,884 |
14,579 |
11,243 |
9,830 |
8,781 |
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($/oz) |
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2,401 |
1,930 |
1,238 |
1,354 |
1,221 |
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| Financial ratios |
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Gross margin |
(%) |
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3.2 |
(1.0) |
(47.7) |
57.5 |
46.3 |
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| Capital expenditure |
(Rm) |
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242 |
281 |
398 |
345 |
280 |
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($m) |
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34 |
37 |
44 |
48 |
39 |
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| Safety |
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LTIFR (per million man hours worked) |
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9.19 |
9.39 |
5.21 |
1.24 |
1.63 |
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FIFR (per million man hours worked) |
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- |
- |
0.13 |
0.37 |
0.14 |
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| Labour complement (including contractors) |
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4,209 |
3,968 |
3,510 |
3,591 |
3,011 |
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*Excluding share-based compensation |
