Our business

Bushveld Complex

Two Rivers

Two Rivers, a joint venture between African Rainbow Minerals (ARM) (55%) and Impala Platinum Holdings Limited (Implats) 45%), is managed by ARM.  Agreement has been reached to incorporate portions 4, 5 and 6 of the adjoining farm, Kalkfontein, as well as portions of the farm Tweefontein held by Impala, 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 Burgersforst in Mpumalanga, South Africa.  In FY2014 Two Rivers produced 175 100 ounces of platinum in concentrate.  The operation comprises two on-reef decline shafts and a concentrator plant and 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 2014

 

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

Two Rivers Mineral Resources and Mineral Reserve Statement 2014
View online 

Two Rivers holds a contiguous old-order mining right over 2 140 hectares on a portion of the farm Dwarsrivier.  The conversion to a new-order mining right was executed during 2013.

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. The larger portion of the mineral reserves (75%) is located in the Main Decline section.

 

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).

 

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.

 

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).

 

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.

Production     2014   2013   2012   2011   2010  
  Tonnes milled ex mine   ('000t)  3 279   3 172   3 103   2 950   2 918  
  Headgrade (6E)  (g/t)  4.01   4.02   3.86   3.94   3.95  
  Platinum in concentrate   ('000oz)  175.1   162.2   149.9   145.3   140.9  
  PGM in concentrate   ('000oz)  374.7   350.4   320.1   307.2   296.8  
               
Labour efficiency     2014   2013   2012   2011   2010  
  Tonnes milled per employee costed**   (t/man/annum)  988   921   941   993   1 117  
               
Cost     2014   2013   2012   2011   2010  
Mining cost of sales   (Rm)  (2 587)  (2 233)  (1 827)  (1 651)  (1 512) 
  Mining operations   (Rm)  (1 657)  (1 581)  (1 357)  (1 172)  (992) 
  Processing operations   (Rm)  (345)  (314)  (264)  (225)  (201) 
  Other   (Rm)  (585)  (338)  (206)  (254)  (319) 
               
Total cost   (Rm)  2 002   1895   1621   1 397   1 193  
               
Unit costs              
  per tonne milled   (R/t)  611   597   522   474   409  
    (US$/t)  59   68   67   67   53  
  per platinum ounce in concentrate   (R/oz)  11 433   11 683   10 814   9 615   8 467  
    (US$/oz)  1 103   1 325   1 396   1 367   1 108  
               
Financial ratios     2014   2013   2012   2011   2010  
  Gross margin ex mine   (%)  29.5   22.1   21.8   27.4   27.5  
               
Capital expenditure     2014   2013   2012   2011   2010  
    (Rm)  319   489   467   280   116  
    (US$m)  31   55   60   40   15  
               
Safety     2014   2013   2012   2011   2010  
  LTIFR     (pmmhwǂ 1.40   1.78   1.43   3.11   2.99  
  FIFR      (pmmhwǂ 0.000   0.000   0.280   0.000   0.000  
               
Labour complement     2014   2013   2012   2011   2010  
  Own employees   (no)  2 350   2 410   779   756   702  
  Contractors   (no)  1 066   1 296   2 735   2 537   2 031  
  **Total employees excluding capital project employees 
  ǂPer million man hours worked