Dishaba Mine

(managed – 100% owned)

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DISHABA MINE
(managed - 100% owned)
Safety - Fatalities: 1 (2)     LTIFR: 1.94 (2.03)
PGM production (000 oz): 291.1 (278.0)
Operating contribution (Rm): 701 (609)
Cash on-mine costs/tonne milled: R966 (R851)
Resources inclusive of Reserves (million tonnes)
Merensky: 46.1 Mt arrow 11.2 4E Moz
UG2: 138.7 Mt arrow 24.9 4E Moz
 
JJ Joubert, general manager

MINE OVERVIEW

Dishaba Mine is situated in the province of Limpopo in South Africa, between the towns of Northam and Thabazimbi, and forms part of the North-western Limb of the Bushveld Complex. The mine operates under a mining right covering a total area of 31 square kilometres.

The mine's infrastructure consists of one vertical shaft, one raise bore and four decline shafts. Dishaba mines on both the Merensky and the UG2 reef horizons, and the mining layout is scattered breast mining with strike pillars. The operating depth for the current workings is between 30 m and 1,250 m below surface.

Dishaba Mine's life-of-mine (LoM) extends to approximately 2058, and consists of a Mineral Resource of 16.5 4E million ounces (exclusive of Ore Reserves) and an Ore Reserve of 15.8 4E million ounces.


KEY ACHIEVEMENTS

  • There were 1 million fatality-free shifts in 2011.
  • Productivity improved.
  • A major new underground support regime was successfully implemented in development work areas.
  • Improved surface infrastructure was established to provide better engagement with employees on a day-to-day basis.

OPERATIONAL REVIEW

Tragically, Mr Bulelani Nongwejane, a winch operator, was fatally injured by falling objects on 13 January 2011. The lost-time injury-frequency rate deteriorated to 1.94 (from 2.03 in 2010).

At 150,300, equivalent refined platinum ounces were 1% below the figure achieved in 2010. Despite the increase in the number of safety stoppages experienced during 2011, the production results were essentially the same as in 2010. The immediately available Ore Reserves were at 19.1 months, compared with 21.8 months in 2010. Productivity increased by 2%, to 4.8 m2 per total operating employee.

Cash on-mine costs increased by 11% to R1.8 billion on the back of mining commodity-related inflationary increases. The cash on-mine cost per tonne milled rose by 14% to R966 per tonne, while cash operating expenses (costs after allowing for off-mine concentrating, smelting and refining activities) per equivalent refined ounce increased by 12%, to R13,125.


CAPITAL EXPENDITURE

Total capital expenditure decreased to R158 million in 2011 (it was R165 million in 2010). On-mine stay-in-business capital expenditure amounted to R132 million (R85 million in 2010), while project capital expenditure was R26 million (R80 million in 2010).

The East Upper UG2 project utilises existing Merensky Reef infrastructure at Dishaba No 2 shaft to access the UG2 Reef horizon. The project started in 2007 and was completed in 2011.

The backfill project which began in 2004, but deferred in 2008, recommenced in 2011. Poor ground conditions at 18 level and lower require backfilling before mining can be executed safely. The anticipated capital expenditure is R150 million, and the project is planned to be completed in the fourth quarter of 2013.

OUTLOOK

Following the completion of East Upper UG2 project, Dishaba Mine expects to increase production from its UG2 Resources during 2012.