NORTH WEST - THE PLATINUM PROVINCE

Kroondal Platinum Mines

Location:

Kroondal is located 120 km north-west of Johannesburg in South Africa, on the western limb of the Bushveld Complex.

Brief history:

Originally an exploration venture listed on the Australian Stock Exchange, Aquarius Platinum first entered into the platinum business in 1996, with the creation and implementation of the Kroondal project.

To raise funding for the project, Aquarius Platinum listed a 45% subsidiary, Kroondal Platinum Mines, on the JSE Securities Exchange South Africa. In 2000, Aquarius Platinum entered nto a strategic alliance with Impala Platinum Holdings (Implats), the world’s second-largestplatinum-group metals (PGMs) producer, which invested instrategic stakes in both Aquarius Platinum and Kroondal and has remained a vital and supportive partner.

Brief description:

Kroondal is primarily an underground operation,with openpit operation slowly tailing off. With both reefs and the parting being mined, this has resulted in a wide-reef operation underground. Blasting control creates large waste rocks n theparting zone, of which a large proportion are removed underground to improve the economics of the operation.

Products:

Platinum.

Mining method:

Openpit (20%) and underground (80%).

Reserves:

Total ore reserves are 11,55-million tons.

Resources:

Total mineral resources are 11,32-million tons.

Geology:

The upper-group-2 reef – an important PGM-bearing ore body – outcrops on the property and dips to the north at approximately 10º. This orebody comprises two mineralised seams – the main and the leader reefs. These reefs are separated by a pyroxenite zone about a metre thick; this is commonly known as the parting.

Major infrastructure and equipment:

Kroondal is primarily an underground operation, with openpit operation slowly tailing off. With both reefs and the parting being mined, this has resulted in a wide-reef operation underground. Blasting control creates large waste rocks n the parting zone, of which a large proportion are removed underground to improve the economics of the operation. The practice of wide-reef mining at Kroondal translates into an increased resource and also improved safety with the competent hangingwall. Kroondal’s success can further be ascribed to the skills and expertise of the management team, the efficiency of contract mining and processing, which brings with it focused, ‘bought-in’ expertise, and teamwork.

Future prospects:

The South African Department of Minerals and Energy approved the environmental management programme report (EMPR) for the company’s pool-and-share project at the Kroondal platinum-mine. EMPR approval is required before mining and construction can begin. Construction of the new concentrator and shaft started on schedule in March 2004. The pool-and-share agreement with Anglo Platinum sees Kroondal attributable PGM ore reserves’ nventory boosted significantly by 2,53-million ounces to approximately 3,76-million ounces. Kroondal’s production will also more than double by 2005 to505 000 PGM ounces, half of which will be attributable to Aquarius Platinum South Africa with the life-of-mine set to extend by eight years to 2016.

Controlling company:

Aquarius Platinum has a 95% share and Impala Platinum has a 5% share in Kroondal platinum-mine.

Mine Manager:

Dave AJ Starley (general manager).

Unique features:

Current productivity levels are among the highest in the ndustry.

Contact details:

Tel: (014) 536 4000, Fax: (014) 536 4020.

From: Mining Weekly, 12 November 2004