Anglo American Platinum Limited |
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Greenfields Projects
OVERVIEW
The Anglo American Platinum Limited (Amplats) Safety Management System has been rolled out at all our capital projects, resulting in improved performance. We achieved our goal of zero fatalities in 2010 (down from two in 2009). We also improved our lost-time injury-frequency rate by 5%, to 0.44. Our focus on total injury-frequency rate is relentless and we will achieve zero harm.
At R7.245 billion, our total capital expenditure for the year was some R2.5 billion lower than in 2009. The total capital expenditure for 2010 included R3,671 billion spent on projects, R2,974 on stay-in-business projects and R599 on waste stripping.
Project capital spend is now directly related to our long-term ounce requirements. This has led to a reduction in the rate of spend, and thus all previously deferred projects have been reviewed as part of our business planning process and incorporated into our ‘growth for value’ strategy.
The projects divisions asset optimisation programs are at different stages of maturity and will deliver value from 2011. Savings of R418 million were delivered from improved supply-chain procurement and enhanced project management controls.
OUTLOOK
Delivery of our business strategy is dependent on our ensuring optimal capital allocation to the best possible set of projects under a set of given constraints. A robust system has been developed, to make it possible to score individual projects against a project prioritisation model and rank them accordingly. The ranking criteria include strategic fit, competitive advantage, business and financial robustness, technical and delivery confidence, project risk and relationships.
Going forward, we are confident that our capital plan is well aligned to our production plan, which is in line with our view of the market.
Capital expenditure excluding capitalised interest will be up to R8 billion, R3.0 to R3.5 billion of which will be stay-in-business capital; R0.5 billion will be allocated to waste stripping at Mogalakwena and the remaining R3.5 to R4.0 billion will be allocated to projects capital.
We reviewed our project delivery model in pursuit of project management excellence. It showed great opportunities for optimisation. These opportunities include, inter alia, flattening our project management structures, increasing the role and deepening the capacity and experience base of our owner’s teams, closer integration, collaboration and standardisation across all our projects, value engineering to ensure fit for purpose designs and optimising mine layouts and mining methods. We are also reviewing our contracting models to create partnerships that provide stability in our pipeline to ensure that projects are delivered safely on schedule and budget, to scope and quality. We are therefore better leveraging on the scale and expertise of the Anglo American Group through structures such as the Anglo Projects Way.
KEY PROJECTS IN THE PIPELINE
TWICKENHAM PLATINUM MINE
(Managed - 100% owned)
SAFETY
Twickenham Platinum Mine had no fatalities in 2010 and also achieved 1 million fatality-free shifts in the course of the year. This translates into more than 1,000 fatality-free days.
CAPITAL EXPENDITURE
The total capital expenditure for 2010 was R483 million, compared with expenditure of R407 million in 2009. This increase resulted from the need to accelerate expenditure on equipment required in the first quarter of 2011 and also to pay for project scoping that was brought forward.
PROJECTS
As a result of the Twickenham Platinum Mine project review produced by Anglo Technical Services and the Amplats Exco in December 2009, the mine’s development was again reviewed in 2010. The focus of the exercise was to optimise the project capital and to reschedule the production ramp-up to make use of achievable efficiencies. Approval to optimise the investment proposal for the mine was given in March 2010. The new investment proposal will be submitted for approval in the third quarter of 2011.
The project is now focused on unlocking the backbone of Twickenham Platinum Mine by converting the operational component of the project into capital development work. Twickenham concentrator is planned for commissioning in 2015.
The project will reach steady state of three million tonnes per annum in 2019.
DER BROCHEN
(100% owned)
The feasibility study for the Der Brochen Project was re-scoped in 2009, owing to the sale of a strike length of 1.3 km to Mvelaphanda Resources as part of the Booysendal transaction. A new mining works programme was submitted and a new-order mining-right conversion was achieved. A conceptual study included some two to three years of initial open-pit mining, followed by underground mining targeting the Merensky reef. Project-value engineering and study opportunities to enhance the business case for the mine will continue in 2011.
A seismic survey was completed on a section of the project footprint in the fourth quarter of 2010 and the survey data will be released in the first quarter of 2011.
UNKI PLATINUM MINE
(managed - 100% owned)
Walter Nemasasi, general manager
OVERVIEW
Unki Mine is situated near Gweru, on Zimbabwe’s Great Dyke. It has been planned as a 120,000 tonne-per-month operation, with potential for further expansion. Concentrate produced at Unki Mine will be transported to the Polokwane Smelter by road.
The mine uses a mechanised, trackless bord-and-pillar mining method. Two declines have been designed, one for miners and materials and the other for ore conveyancing. Both declines have been developed on-reef, with strike belts from the seven production sections transferring ore directly onto the main decline conveyor.
KEY ACHIEVEMENTS
- Unki Mine achieved 1.5 million fatality-free shifts in 2010.
- In the year under review the production ramp-up amounted to 30% of steady-state annual production.
- Hot commissioning of the concentrator began on 28 November 2010.
“Unki Mine is in ramp-up phase and is expected to reach its full production of 120,000 tonnes per month in 2013. In 2010 production increased substantially to 391,594 tonnes (compared with 71,750 tonnes in 2009).”
SAFETY
Unki Mine had no fatalities in 2010 and attained what amounted to six years’ fatality-free mining. The mine’s lost-time injury frequency rate improved, from 0.20 in 2009 to 0.14 in 2010.
PRODUCTION
Unki Mine is in ramp-up phase and progressing according to plan.
Decline development that was at 64% of completion in 2009 reached 95% of completion in 2010. As a result immediately available Ore Reserves increased by 100% in 2010. The equipping of declines and sections has improved immediately stopeable ore reserves, to 40% of steady-state requirement.
CAPITAL EXPENDITURE
Project capital expenditure eased to R827 million in 2010 (from R837 million in 2009), in line with the project execution plan. It is expected to reduce further in 2011, to R332 million.
PROJECTS
At 1.44 million tonnes (or 70,000 platinum ounces) per annum, current Unki East Mine production is the initial phase of an envisaged potential production of 5.76 million tonnes (or 280,000 platinum ounces) per annum. The development of the mine’s underground declines and levels is 90% complete and the supporting infrastructure is approximately 97% complete. Housing construction is planned to commence in the first quarter of 2011.
OUTLOOK
Unki Mine will reach full production of 120,000 tonnes per month in the third quarter of 2013
