The latest gold tailings retreatment project of Pan African Resources is ahead of schedule and below budget.
The Mogale Tailings Retreatment (MTR) Project, located to the west of Johannesburg, near Krugersdorp, on Gauteng’s West Rand, is expected to produce 60 000 oz/y over a 21-year life-of-mine, at a forecast all-in sustaining cost (AISC) of less than $900/oz, London- and Johannesburg-listed Pan African reported on Monday.
“Exceptional progress has been made with the MTR Project’s construction, which is nearing its final stages,” CEO Cobus Loots stated in a Johannesburg stock exchange news service announcement.
Plant commissioning and first gold production at the below-budget MTR Project is anticipated well ahead of schedule in October 2024, with steady-state production expected during December.
Pan African is not only creating 500 jobs for mostly local personnel but also helping to remove many years of environmental scarring brought about to the west of the City of Gold, where mining of the precious metal began in the 1880s, leaving behind a number of eco-social challenges.
“I can assure you we’ll work to our ethos of making a positive difference to the site in the years ahead,” Pan African chairperson Keith Spencer declared assuredly at the MTR Project sod-turning, covered by Mining Weekly in July last year, when attention was drawn to the West Rand location of the MTR Project having, over many decades past, produced more than 2 000 t of gold from numerous deep underground shafts and tunnels, with some mines in the area deeper than 3.5 km from surface.
Apart from removing the unsightly and dangerous tailings, there will be the added benefit of filling in abandoned underground tunnels with re-mined waste material to eliminate illegal mining. The rehabilitated ground can be put to better economic use for factories, industry and housing.
Moreover, an independent feasibility study for a new solar plant at the MTR operation is expected to be completed before the end of September.
Solar plants are already a standard feature at Pan African’s other operations. At its Fairview gold mine, a key part of the Barberton Mines complex in Mpumalanga, construction and mechanical assembly, including installation of the solar trackers for the mine’s 8.75 MW solar PV generating plant, have been completed, enabling the commencement of the required testwork to ensure that the facility complies with operating standards and regulatory requirements. First power generation is anticipated in the next month. This solar plant is expected to provide 15% of Barberton Mines’ energy requirements, with yearly electricity cost savings of $2.4-million, at current Eskom tariffs.
Evander Mines’ and Barberton Mines’ solar PV generating plants are now funded by a $19.4-million, five-year green loan facility, which became effective in June. This facility provides for an accordion option of $13.9-million to enable the group’s future renewable energy funding requirements.
Pan African has again delivered into its production guidance, while further improving safety rates, it stated in its operational update for the year to June 30, which was accompanied by the announcement of group financial manager Marileen Kok taking over from retiring Deon Louw as group financial director.
The 6.2%-higher yearly production of 186 039 oz was within guidance with the average achieved gold price of $2 021/oz or R1 215 827/kg.
Barberton Mines produced 71 470 oz, Evander Mines underground 40 869 oz, Elikhulu 54 812 oz, and Barberton Tailings Retreatment Plant (BTRP) 18 888 oz.
AISC for the reporting period is expected to be $1 350/oz, at an average exchange rate of R18.71 to the dollar.
The all-in sustaining production costs at the Elikhulu and BTRP tailings retreatment operations were described as being “some of the lowest in Southern Africa”.
Commissioning of the ventilation shaft hoisting system at Evander underground during the start of the 2025 financial year, is expected to reduce reliance on the conveyor system currently in use, improving this operation’s production profile and facilitating the 25-26 level project’s development.
In the 12 months to June 30, the total reportable injury frequency rate reduced to 5.47 per million person hours and the lost time injury frequency rate improved to 1.62 per million person hours.
Annual financial results are due to be presented in September, when more details on operational and project developments will be provided.
