Platreef gets down to business

Working at Platreef Resources’ planned platinum mine just outside Mokopane will be like working in Sandton City’s underground parking area as opposed to working underneath a table.
This is how Platreef project director, Gerick Mouton, illustrated the difference between mining the major platinum resource his company recently discovered and traditional narrow-reef mining method practiced in Rustenburg’s platinum mines.
Mouton was addressing local business people at the Mokopane Business Chamber members’ meeting at the Protea Park Hotel last Thursday.
“The platinum reef we discovered here is 24m thick, compared to the 500mm reef found in the Rustenburg area,” Mouton said. “It is easier to mine and translates into a much longer lifespan for the mine than initially anticipated.”
This Flatreef deposit within the Platreef Discovery area was discovered in 2012 while Platreef was analysing data from the thousands of prospecting holes it has drilled over the past 12 years. The reef, which is quite close to the surface dips down. This down-dip, as it is known in the mining industry, is extremely difficult and expensive to mine. But then the reef flattens out and forms a ‘flatreef’. The deposit averages 24m in true thickness at a 2 g/t cut-off grade for 4E. The thick Flatreef mineral is amendable to large-scale, mechanised underground mining. The resource is substantial, with its initial resource statement at 214-million tons.
Mouton, however, indicated that the reef may extend another 4km to the South. But no one in South Africa has ever mined a Flatreef underground.
Platreef is owned by international companies, Ivanplats from Canada and the Itochu Corporation from Japan, so it has ample exposure to international best practices, which it will have to rely on in training up a local workforce for this mine.
“We plan to start training people from this area within the next 12 months,” Mouton said. He told business leaders that the mine has set itself high targets with regards to local employment and procurement.

Opportunities
While fewer people can be employed at this mine than at a traditional open-pit or typical narrow-reef mine, employees will be higher skilled and better paid.
Platreef will also rely heavily on local businesses for equipment and supplies. “Over the past 12 months alone Platreef has spent R15 million on goods and services from businesses in Mokopane,” Mouton said. He urged businesses to register as vendors at the Platreef office in town.

Challenges
The Flatreef lies almost a kilometre underground. Mouton told business people that sinking a shaft to a depth of 700m takes about three years. “We will start off with four shafts, but eventually plan to have seven.”
Platreef also needs water and electricity to mine the resource. The water is supposed to come from Flag Boshielo dam via a pipeline that will be built by the mining companies. Agreements on this are already in place - even an agreement that almost half of the 72-million litre per day quota will be available to the Mogalakwena municipality. But the minister of water affairs has not yet signed the agreement. As soon as he signs, construction on the pipeline will start in earnest.
The other major challenge is electricity, for which Platreef will rely on Medupi Power Station. “We had meetings with Eskom this week, but they would not commit to a delivery date.”

Schedule
Platreef is, however, confident that these challenges will be addressed timeously and not delay the project. “We plan to start sinking shaft one for the extraction of a bulk sample towards the end of the year and shaft two in the second quarter of 2014. Initial ore production is planned for 2018.
We will start off with four shafts, but eventually plan to have seven.”
Driving past the mine only headgear and minimal structures will be visible on the surface. Workshops, the crusher, equipment, canteens will all be underground.

Environmental impact
Mouton told business leaders that Digby Wells Environmental, the environmental consultant appointed by Platreef is currently busy with an Environmental impact assessment on which an environmental impact management plan will be based.
He concluded by urging residents to register as interested and affected parties, to attend public participation meetings and to review the EISA documents that are available at the local libraries. - Jasper Raats (jasper@noordnuus.co.za)