Rustenburg Base Metals Refiners (RBMR)

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Safety – Fatalities: 1 (0) LTIFR: 0.74 (0.50)
Base metal production (000 tonnes): 24
Cash costs/base metal tonne: R39,860
 
Mark Gilmore, general manager

The main function of Rustenburg Base Metal Refiners (RBMR) is the separation of precious metals from base metals. The magnetic concentration plant (MCP) concentrates the platinum group metals in a final concentrate that forms the primary feed to Precious Metals Refiners (PMR). The remaining material - the non-magnetic fraction - is treated and refined to base metal products at the Base Metals Refinery (BMR).

SAFETY PERFORMANCE

There was a decline in safety statistics at RBMR, including a fatality on 6 October. RBMR recorded an increase in lost-time injuries, with the 2010 frequency rate of 0.50 increasing to 0.74 in 2011.

In 2011, considerable effort was invested in housekeeping and visible felt leadership interactions, in order to improve safety performance and bring it closer to the Company's goal of 'zero harm'. The year also saw the introduction of the process safety management programme to help control low-frequency, high-impact exposures.

PRODUCTION

Despite below-plan receipts from upstream operations, platinum production increased by 0.48% (11,948 ounces) to 2,503,853 ounces during the year under review. Base metals production increased by 6% (1,278 tonnes) to 24,437 tonnes.

Asset-optimisation was focused primarily on platinum and rhodium recovery, and also on the integration of the BMR expansion project.

COSTS

Cash operating costs for 2011 were R24 million under budget, but increased by 24% or R186.5 million over the 2010 figure, to R974.1 million. Cost increases were driven by higher-than-inflation price increases on key commodities. As a result the cash cost per platinum ounce went up from R316 in 2010 to R389 in 2011. Cash cost per base metal tonne increased by R5,855 (17% higher than in 2010), to R39,860.

CAPITAL EXPENDITURE

Capital expenditure was R388 million, of which R134 million was for stay-in-business expenditure and R254.2 million for projects. Project capital is attributable to the expansion of the milling plant to the value of R6.3 million at the MCP; and to R247.9 million allocated to the BMR expansion to an annual production capacity of 33 ktpa Ni cathode.

PROJECTS

Base Metals Refinery (BMR) expansion project
The objective of the BMR expansion project is to expand the refinery's nickel production capacity from 21.5 to 33 ktpa nickel cathode. The project makes allowance for the corresponding increase in copper cathode production as well as the concomitant increase in the production of cobalt sulphate and sodium sulphate. The expansion will be achieved through changes to the process technology as well as capacity expansion though the installation of new equipment. A critical project objective includes maximising reuse of existing assets and minimising process interruption during execution.

The RBMR expansion project which commenced in the second half of 2007, was restarted in January 2010 to take cognisance of the deferment period. The first Ni cathode from the new automated Nickel tank house was produced in March 2011, while chemical change-over completion was achieved during the fourth quarter of 2011. Operational optimisation is under way.

Magnetic concentration plant (MCP) expansion project
The project was approved in 2008 and allows for increasing milling and magnetic separation capacity from 64 to 95 ktpa ACP converter matte. Construction of the project began in the second half of 2008 and was handed over to Operations during April 2010.

Operational optimisation is progressing on track with the demolition of the "old" milling and magnetic separation plant set for completion in the first quarter of 2012. Final costs for the project are forecast to be within the approved budget.

OUTLOOK

Going into 2012, considerable effort will be invested in improving the safety performance of RBMR. The successful ramp-up of the BMR expansion project remains a key priority. Moreover, the drive to improve operating efficiencies in terms of safety, costs and recoveries will be sustained in 2012, aided by the potential opportunities being created by the expansion initiatives.