Modern Mining April 2019

MINING News

tionofthehitchfoundationareexpected to be completed in Q2-2019, enabling the beginning of the pre-sink that will extend 84 m below surface. Ivanhoe plans to develop the Platreef mine in phases. The initial annual production rate of 4 Mt/a is designed to establish an operating platform to support future expan- sions. This is expected to be followed by a potential doubling of production to 8 Mt/a, and then a third expansion phase to a steady-state 12 Mt/a, which would establish Platreef among the largest PGM mines in the world. The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 m to 1 200 m below surface. Shaft 2 will provide primary access to the mining zones; secondary access will be via Shaft 1. During mine production, both shafts will also serve as ventilation intakes. Three additional ventilation exhaust raises are planned to achieve steady-state production. Planned mining methods will use highly productive, mechanised methods, including long-hole stoping and drift- and-fill mining. Each method will utilise cemented backfill for maximumore extrac- tion. The ore will be hauled from the stopes to a series of internal ore passes and fed

On-going development work at Shaft 1’s 850-metre-level access station, showing the northern top-cut excavation (photo: Ivanhoe).

150 000 people, project employees and local entrepreneurs. A Japanese consor- tium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation and Japan Gas Corporation owns a 10 % interest in Ivanplats, which it acquired in two tranches for a total investment of US$290 million.  strong returns to our shareholders.” Rio Tinto Energy & Minerals Chief Executive Bold Baatar said: “RBM is an outstanding business, South Africa’s larg- est mineral sands producer and, equally importantly, a fully beneficiated metal- lurgical complex. We not only mine, but produce value-added products for cus- tomers around the world. We are proud of the value we create, and retain, in South Africa. This is underscored by our position as KwaZulu-Natal’s leading tax- payer, paying US$79 million in taxes and royalties in 2018 alone. “Our investment in Zulti South will ensure we maintain our contribution to the province andour partner communities. Wewant to recognise the support fromthe Government of South Africa, the KwaZulu- Natal provincial leadership and, most importantly, the invaluable support of our host communities – Mbonambi, Sokhulu, Mkhwanazi and Dube – in securing the future of this world-class business.” 

to the bottom of Shaft 2, where it will be crushed and hoisted to surface. The Platreef project is owned by Ivanplats (Pty) Ltd, which is 64 %-owned by Ivanhoe Mines. A 26 % interest is held by Ivanplats’ historically-disadvantaged, B-BBEE partners, which include 20 local host communities with approximately

Rio Tinto approves US$463 million Zulti South mine Rio Tinto has approved the next stage in the development of Richards BayMinerals (RBM) in South Africa through the con- struction of the Zulti South project. The US$463million (Rio Tinto share US$343 million) investment will sustain RBM’s cur- rent capacity and extend mine life. The investment will be fully self-funded from RBM’s cash flows, with no additional debt or recourse to Rio Tinto. The project is expected to deliver an internal rate of return of 24 % (Rio Tinto share).

Commenting on the decision to pro- ceed with Zulti South, Rio Tinto Chief Executive J-S Jacques noted that Rio Tinto had a long history in South Africa and said the investment underscored the group’s commitment for the coming decades and beyond. “Zulti South is one of the best unde- veloped minerals sand deposits in the industry, and will significantly extend RBM’s position as a world-class, first- quartile asset,” he said. “The long-term fundamentals of the market remain strong, and production from Zulti South will commence in time to fill a widen- ing supply gap, ensuring RBM’s position as a leader in the sector, and delivering

RBM currently operates four mines in the Zulti North lease area, a mineral separation plant and smelting facility. The Zulti North orebody grade is declin- ing and hence the Zulti South mine is required to maintain the output of high- margin zircon and rutile, and provide sufficient ore to support TiO 2 sales. The Zulti South mine (Phase 1) will underpin RBM’s supply of zircon and ilmenite over the life of mine. Construction is scheduled to start in mid-2019, subject to the granting of all necessary permits, with first commer- cial production expected in late 2021.

April 2019  MODERN MINING  5