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Bushveld Complex

Two Rivers

The Two Rivers Platinum Mine (Two Rivers) is a joint venture managed by African Rainbow Minerals (ARM) and in which Impala Platinum Holdings Limited (Implats) has a 45% stake. Agreement has been reached to incorporate portions 4, 5 and 6 of the adjoining farm, Kalkfontein, into the mining area. When this happens, Implats’ effective interest will increase to 49%. The operation is situated on the farm Dwarsrivier on the southern part of the eastern limb of the Bushveld Complex some 35 kilometers south-west of Burgersfort in Mpumalanga, South Africa. In FY2013 the operation produced 162 200 ounces of platinum in concentrate. Two Rivers comprises two on-reef decline shafts and a concentrator plant. It has a life-of-mine offtake agreement with Impala Refining Services (IRS).

 

Business summary

  • Joint venture with African Rainbow Minerals Limited
  • Two on-reef shafts
  • Concentrator plant
  • Reserves: 0.9 million attributable ounces of platinum
  • Resources (including reserves) 2.9 million attributable ounces of platinum
  • Production: 162 200 ounces of platinum in concentrate
  • Employees and contractors: 3 706
 

Operational review 2013

 

GEOLOGY

Both the Merensky and underlying UG2 Reefs occur on the property but only the UG2 is currently exploited. The UG2 outcrops in the Klein Dwarsrivier valley over a north-south strike length of 7.5 kilometres and dips to the west at about 7 to 10 degrees. The vertical separation between the Merensky and UG2 Reefs is around 140 metres. Due to the extreme topography, the Merensky reef outcrops further up the mountain slope and also results in the UG2 occurring at a depth of 935 metres below surface on the western boundary.

Three distinct reef types have been defined for the UG2 Reef at Two Rivers, namely the ‘normal reef’ with a thick main chromitite layer; a ‘split reef’ characterised by an internal pyroxenite/norite lens within the main chromitite layer; and a ‘multiple split reef’ with numerous pyroxenite/norite lenses occuring within the main chromitite layer.  

MINERAL RESOURCES AND MINERAL RESERVES (100%)

Mineral Resource and Mineral Reserve Statement 2013
View online 

 

MINING

The UG2 orebody is accessed via two decline shaft systems situated three kilometres apart, namely the Main Decline and the North Decline. Underground mining operations are fully mechanised and the bord and pillar mining method is employed where stoping widths average around 1.8 metres. A mining section consists of eight 12 metre rooms, with pillar sizes increasing with depth below surface.

METALLURGY

Two Rivers has a concentrator plant on site, where initial processing is done.  It comprises a standard MF2 design as generally used in the industry. Concentrate is transported by road to Implats’ Mineral Processes in Rustenburg where further processing takes place in terms of an agreement with Impala Refining Services (IRS).

SUSTAINABLE DEVELOPMENT

Two Rivers is committed to social development initiatives and engages in, develops and builds community relationships. It takes responsibility for economic, social and environmental issues that impact its people, communities and environments and is involved in a number of community projects in the area. The Two Rivers Platinum Community Forum was established primarily to share information about the mine with local communities and to set up a focus and network for social upliftment projects.

BLACK ECONOMIC EMPOWERMENT

African Rainbow Minerals (ARM) was founded in 2004 as South Africa’s first black-owned mining company. As such Two Rivers complies with the BEE equity component of the Mining Charter while all other aspects of the Charter are dealt with at an operational level. The operation subscribes to the transformation of South African business by actively promoting BEE ownership and employing local SMEs (small- and medium-sized enterprises).

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. During 2001, Assmang elected to dispose of its platinum interests at the Dwarsrivier Chrome mine. Two Rivers Platinum, the incorporated Joint Venture between Avmin and Implats secured the platinum rights in December of that year. Subsequent corporate activity involving Avmin, ARM and Harmony resulted in the transfer of Avmin’s share in Two Rivers to a new, empowered platinum entity, ARM Platinum, a division of ARM. The joint venture partners began development of the Two Rivers project in June 2005. The concentrator plant was commissioned early in FY2007 and in FY2008 the mine successfully made the transition from project to operation.

Two Rivers - key statistics

    2013   2012   2011   2010   2009  
Sales   (Rm)  2 867   2 335   2 274   2 086   972  
Platinum     1 931   1 557   1 477   1 370   874  
Palladium     533   383   365   221   102  
Rhodium     234   221   290   375   (33) 
Nickel     69   75   64   57   39  
Other     100   99   78   63   (10) 
Cost of sales   (Rm)  (2 233)  (1 827)  (1 651)  (1 512)  (1 325) 
Mining operations     (1 581)  (1 357)  (1 172)  (992)  (867) 
Concentrating operations     (314)  (264)  (225)  (201)  (179) 
Treatment charges     (18)  (18)  (15)  (14)  (13) 
Depreciation     (372)  (276)  (249)  (257)  (269) 
(Decrease)/increase in metal inventories     52   88   10   (48)  3  
Gross profit     634   508   623   574   (353) 
Royalty expense     (92)  (43)  (11)  (2)  –  
Gross margin   (%)  22.1   21.8   27.4   27.5   (36.4) 
Profit/(loss) for the year   (Rm)  361   296   415   325   (395) 
45% attributable to Implats   (Rm)  163   133   185   147   (178) 
Intercompany adjustment*   (Rm)  (7)  (26)  46   (52)  219  
Share of profit in Implats Group   (Rm)  156   107   231   95   41  
Sales volumes in concentrate              
Platinum   (000oz)  161.8   148.6   145.5   140.9   118.0  
Palladium   (000oz)  98.3   88.7   83.7   81.6   67.4  
Rhodium   (000oz)  28.5   25.2   24.2   23.6   19.1  
Nickel   (t)  548   596   442   443   365  
Prices achieved in concentrate              
Platinum   (US$/oz)  1 358   1 361   1 461   1 271   781  
Palladium   (US$/oz)  615   561   629   355   159  
Rhodium   (US$/oz)  931   1 141   1 717   2 079   (207) 
Nickel   (US$/t)  14 284   16 414   21 010   16 970   11 949  
Exchange rate achieved   (R/US$)  8.79   7.70   6.95   7.64   9.46  
Adjustment note: The adjustment relates to sales from Two Rivers to the Implats Group which at year-end were still in the pipeline.  
Production              
Tonnes milled ex mine   (000t)  3 172   3 103   2 950   2 918   2 616  
Headgrade (6E)  (g/t)  4.02   3.86   3.94   3.95   4.10  
Platinum in concentrate   (000oz)  162.2   149.9   145.3   140.9   118.0  
Palladium in concentrate   (000oz)  98.6   89.5   84.1   81.6   67.4  
Rhodium in concentrate   (000oz)  28.7   25.5   24.6   23.6   19.1  
Nickel in concentrate   (t)  555   595   444   443   365  
PGM in concentrate   (000oz)  350.4   320.1   307.2   296.8   246.3  
Cost              
Total cost   (Rm)  1 895   1 621   1 397   1 193   1 046  
Cost per tonne milled   (R/t)  597   522   474   409   400  
  (US$/t)  68   67   67   53   42  
Cost per PGM ounce in concentrate   (R/oz)  5 408   5 064   4 548   4 020   4 247  
  (US$/t)  613   654   647   526   449  
Cost per platinum ounce in concentrate   (R/oz)  11 683   10 814   9 615   8 467   8 862  
  (US$/t)  1 325   1 396   1 367   1 108   937  
Cost net of revenue received for other metals   (R/oz)  5 912   5 624   4 129   3 385   8 032  
  (US$/t)  670   726   587   443   849  
Capital expenditure   (Rm)  489   467   280   116   349  
  (US$m)  55   60   40   15   37  
Labour including capital              
Own employees   (no)  2 410   779   756   702   774  
Contractors   (no)  1 296   2 735   2 537   2 031   2 078  
Labour efficiency              
Tonnes milled per employee costed**   (t/man/annum)  921   941   993   1 117   1 015  
*Total employees excluding capital project employees.