The Business of Mining
Total Page:16
File Type:pdf, Size:1020Kb
THE BUSINESS OF MINING Gordon L Smith Pr Eng, PhD Executive Head: Technical, Safety & Sustainability ANGLO AMERICAN PLATINUM LIMITED 1 AGENDA FOR THE MORNING 1. Introducing the Core Concept 2. The Platinum Value Chain 3. Platinum Geographic Landscape & Resource characteristics 4. Mining Methods • Design • Development • Capital Intensity • Technology 5. Drivers of Value 6. Conclusion 7. Consolidation: Interactive discussion of cost curves 2 THE CORE CONCEPT REVENUE WORKING COST PROFIT PROFIT CAPITAL NET CASHFLOW Tonnes Grade Recovery Productivity Project & SIB Capital Mining layout Process layout Technology & & Selection Design Design Orebody Characteristics • Geometry • Geometallurgy • Physical characteristics (dip, strike, width, depth, orientation) 3 PLATINUM VALUE CHAIN (MAPPING VIEW) MINERAL SCHEDULE DESIGN DEVELOP ORE MINE ROM RESOURCE MINERAL RESERVE STOCKPILE RESOURCE MINING CONCENTRATING SMELTING ACP MCP BMR PRODUCT TRANSFER to & STOCKPILE STOCKPILE STOCKPILE STOCKPILE (Base MARKETING Metals) CHROME PLANT CHROME PMR PRODUCT STOCKPILE PRODUCT (PGM’s) PROCESSING 4 Notes: ACP – Anglo Converter Process, MCP – Magnetic Concentrator Plant, BMR – Base Metals Refinery ANGLO AMERICAN PLATINUM VALUE CHAIN (Infographic View) Mining Concentrating Smelting Refining Products Polokwane Underground Open Pit Magnetic Concentration Plant (MCP) Waterval Underground Open pit • Amandelbult • Mogalakwena Mortimer Ni Cu • Unki Unki • Mototolo Cobalt Sodium • Modikwa JV Sulphate Sulphate • Kroondal JV Base Metals Refinery (BMR) 32.4ktpa refined Ni Amplats Converter Pt Pd Rh Process (ACP) Au Ru Ir Sulphuric Cr O 2 3 Acid Precious Metals Refinery (PMR) 3.5moz refined Pt 5 SOUTH AFRICAN GEOGRAPHIC PGM LANDSCAPE AAP (own & JV) Eastplats PTM WeSizwe Pallinghurst Implats/ARM JV Implats (own) African Thunder Sibanye Lonmin PTM Waterberg Lonmin Recent ownership Northam change Bokoni Baobab Kwanda North Dishaba Ga-Pasha Platreef Twickenham Boikantshu Tjate Marula Tumela Akanani Garatau Smokey Hills Mogalakwena Union Zondereinde Modikwa (Siyanda) Platreef Resources Sedibelo Two Rivers Pilanesberg Mototolo Mareesburg Bakubung WeSizwe Styldrift Der Brochen Maseve Crocodile Booysendal BRPM (RBPlats) River (RBPlats) Everest (Sibanye) Impala 80% of the world’s economically viable platinum- bearing deposits are located in the Bushveld Igneous Rustenburg Complex (Bushveld) which is in the northern part of South Africa. The balance is largely in Zimbabwe (the Great Dyke deposit), Russia, and North America. Eland (NHM) Southern Africa is the only primary source of platinum, Kroondal with platinum in Russia and North America mined as a Marikana by-product of other metals (mainly nickel and Lonmin Pandora palladium, respectively). 6 (Sibanye) (Sibanye) DIFFERENCES IN REEF LOCALITY PGM production in Southern Africa comes from different regions. Each presents different opportunities and challenges in respect of ore mix, grade, proximity to surface infrastructure and depth of resource. Zimbabwe Great Dyke - Developing Key Metals: PGMs & Nickel Reefs: MSZ • Expansion potential in shallower underground shafts • Complex cross-boarder logistics South Africa: Bushveld Complex Northern Limb - Developing Western Limb - Mature Eastern Limb - Developing Key Metals: PGMs & Nickel Key Metals: PGMs & Chrome Key Metals: PGMs & Chrome Reefs: Platreef Reefs: Merensky & UG2 Reefs: Merensky & UG2 • Lowest grade and revenue per tonne of ore • Highest grade and revenue per tonne of ore • Largest expansion potential • Large volume open pit mining • Limited production expansion opportunities • Shallower underground shafts • Undeveloped Nickel-dominated deposits (mostly Brownfield replacement) • Infrastructure & Utilities challenges • Infrastructure & Utilities challenges • Deepest shafts • Fully developed infrastructure • Primary processing hub for all major competitors 7 SOUTH AFRICA’S BUSHVELD COMPLEX SA PGM production comes from three regions; the Western Limb is the most developed with multiple brownfield opportunities and the highest ratios of Platinum. SA Bushveld Complex Northern Limb - Growing Eastern Limb - Growing • High proportion of Base Metal • Mostly open pit mining Polokwane • High proportion of Palladium and • Approx. 250 years of remaining Rhodium production at current levels • Mostly underground mining • Pt:Pd Ratio – 1:1 • Mostly greenfield opportunities • Approx. 250 years of remaining production at current levels Mokopane • Pt:Pd Ratio – 1:1 Western Limb - Developed • High proportion of Platinum • Mostly underground mining • Mostly brownfield opportunities • Approx. 40 years of remaining production at current levels • Pt:Pd Ratio – 2:1 Rustenburg Pretoria 0 25 50 Witbank Kilometers Notes: Years of production based on reserves and inferred resources given production for each in 2008. 8 MINING: MINERAL RESOURCE MINERAL SCHEDULE ORE MINE ROM RESOURCE DESIGN MINERAL DEVELOP RESOURCE RESERVE STOCKPILE A Mineral Resource is a concentration or occurrence A Mineral Reserve is the economically mineable part of material of economic interest in or on the earth’s of a Measured and/or Indicated Mineral Resource. It crust in such form, quality and quantity that there are includes diluting materials and allowances for losses, reasonable prospects for eventual economic extraction which may occur when the material is mined or (RPEEE). extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. 9 THE SAMREC CODE MINERAL SCHEDULE ORE MINE ROM RESOURCE DESIGN MINERAL DEVELOP RESOURCE RESERVE STOCKPILE 10 SOUTHERN AFRICAN PGM 4E METAL RATIOS Zimbabwe (MSZ) SA Bushveld Complex Platreef 6% 3% 8% 4% Polokwane 42% 49% 49% 39% Merensky UG2 Mokopane 3% 5% 1% 11% Merensky UG2 29% 29% 7% 63% 59% 3% 1% 9% 31% 48% 59% 41% Rustenburg Pretoria Merensky UG2 0 25 50 Witbank 4% 5% 1% 11% Kilometers 27% 64% 57% 32% 11 Notes: Estimates based on metal splits of resources declared MERENSKY REEF PROFILE Minimum Planned Channel Mining Resource Width Widths Width Stoping Width (CW) (MMW) 10cm HW cut 10cm HW cut 5cm HW OB 64.8cm 120cm 120m 125cm 0cm FW 45.2cm FW cut Merensky: Closest to the surface • Relatively flat seam (reef dip 9 to 23 degrees) • Narrow seam (seam width 0.2 to 1.8 m) • Hardest ore body • Highest proportion of Platinum 12 UG2 REEF PROFILE Minimum Channel Resource Planned Mining Width Width Stoping Width Widths (CW) (MMW) 120cm 134cm 140cm 150cm 10cm FW Cut UG2: Rests below Merensky • Relatively flat seam (reef dip 9 to 23 degrees) • Narrow seam (seam width 0.6 to 1.6 m) • Less hard than Merensky • High Rhodium and Chromite content • Distance between Merensky and UG2 reefs varies significantly, e.g. Rustenburg 130m, Amandelbult 30m, Twickenham 450m 13 PLATREEF PROFILE Platreef: Relatively shallow deposit • Steepest seam (up to 35 degrees dip) • Widest seams • Mining by means of Opencast • Only located in the Northern limb • High Nickel content 14 MSZ REEF PROFILE 15 GEOLOGY INFLUENCES MINING METHODS Underground Unsupported Supported Caving Methods Square Narrow Room & Stope & Shrinkage Sublevel Cut & Fill Longwall SubLevel Factor Set Block Caving Tabular Pillar Pillar Stoping Stoping Stoping Stoping Caving Stoping Ore Moderate Weak/ Moderate/ Moderate/ Moderate/ Moderate/ Weak/ Strong Weak Any Strength /Strong Moderate Strong Strong Strong Strong Moderate Rock Moderate/ Moderate/ Fairly Weak / Strong Strong Weak Weak Weak Weak / Moderate Strength Strong Strong Strong Moderate Deposit Tabular / Tabular / Tabular / Tabular / Tabular / Tabular Tabular Any Tabular Massive / Thick Shape Lenticular Lenticular Lenticular Irregular Massive Low/ Low / Fairly Fairly Deposit Dip Low / Flat Fairly Steep Any Low/ Flat Fairly Steep Fairly Steep Moderate Moderate Steep Steep Deposit Large / Large / Thin / Thick / Thin / Usually Any Thin / Wide Large Thick Very Thick Size Thin Thin Moderate Moderate Moderate Small Low / Ore Grade High Moderate Fairly High Moderate Fairly High High Moderate Moderate Low Moderate Ore Uniform Uniform Variable Uniform Uniform Variable Variable Uniform Moderate Uniform Uniformity Shallow / Shallow / Shallow / Shallow / Moderate/ Moderate/ Depth Moderate Deep Moderate Moderate Deep Moderate Moderate Moderate Deep Deep 16 Source: Dr HZ Harraz (modified) MINING: DESIGN MINERAL SCHEDULE ORE MINE ROM RESOURCE DESIGN MINERAL DEVELOP RESERVE STOCKPILE RESOURCE Access Systems: 1. Vertical Shaft Systems 2. Decline Shaft Systems. 3. Open Cast Block Design: Vent Shaft 1. Scattered breast mining and up-dip, down-dip with track Men. Material Ore Transport bound ore removal – Utility Reticulation conventional layout Communication 2. Bord and Pillar – mechanised layout 3. Open cast – surface excavation represented by highwalls and benches – mechanised layout Mining Methods: 1. Conventional Underground Salient Features: Mining. 2. Hybrid Underground Mining. 1. Conventional mining can be done any reef dip 3. Mechanised Underground 2. Mechanised mining typically never gets done when the reef dips more than 10° Mining. 3. Conventional mining can be done at mining widths upto 2,0 metres, whereas 4. Open Cast Mining. Mechanised can be done above 2.0 metres 4. Shaft systems, the sequence is 1st Gen, 2nd Gen, etc. The sequence is highly dependent on the orebody outcropping 17 MINING: DEVELOP MINERAL SCHEDULE ORE MINE ROM RESOURCE DESIGN MINERAL DEVELOP MEREKY CHROME PLANT EXNRESOURCE RESERVE STOCKPILE SalientProject Features: