Shaft Sinkers Holdings has been awarded additional work by Afplats (owned by Implats) on its existing Leeuwkop project. The scope of the work includes the continuation of sinking activities on the main shaft at Leeuwkop to a depth of 984 m from the current level of approximately 700 m. The contract, commencing immediately, is scheduled to be completed in June 2014 and has a total value of £2.2 million. The contract is on a rates basis.

This follows a previous contract extension at Leeuwkop in August 2013 under which the group introduced revised working practices that have resulted in cost savings for the client whilst also gaining significant time on the project schedule.

Alon Davidov, Chief Executive, explained:  “The recent introduction of an innovative new shift system by the Shaft Sinkers team at Leeuwkop has saved Afplats time and money. This is a clear example of the strong technical skills and commitment to operational excellence of the group’s employees. We look forward to continuing to work with Afplats on the successful delivery of this project.”

The development of the Leeuwkop project represents the first phase in the turning to account of the Afplats acquisition. The project involves the development of a 1,350 m twin-shaft system to access the orebody. Mining operations will initially begin at around 1,100 m below surface and extend to a depth of about 1,500 m. Other major infrastructural developments to be undertaken include the construction of a concentrator facility with a capacity of 250,000 t/month and a tailings dam. Both of these will be constructed to allow for possible increases in capacity should future expansions to the mining operation become viable.

While the mine design and production profile is still to be finalised, the most likely mining method will be mechanised bord-and-pillar mining. Ore will be accessed via a four-barrel on-reef decline system which will enable a rapid and cost-effective ramp up to production from development.

The UG2 orebody is well-developed, relatively wide and, in comparison to other areas, relatively undisturbed by major faulting.

A key advantage for Implats is the project’s location on the well-developed western limb of the Bushveld Complex, with its proximity to the extensive management, services, technical and processing infrastructure at Impala Rustenburg, just some 55 km away. Also, the sourcing of scarce mining skills is expected to be less challenging than on the eastern limb of the Bushveld Complex as this is a long-standing mining region with an available, skilled human capital base.

The mine will exploit the UG2 Reef in the Leeuwkop area. Annual capacity at full production will be 3 Mt (250,000 t/month), yielding 140,000 to 160,000 oz of platinum from ore averaging 3.75g/t (3PGE + Au). Capital expenditure is estimated to be R3.0 billion over the first five years. The life of the project is 22 years.