Johannesburg - Black-owned Royal Bafokeng Platinum (RBPlat) said last week that it was planning to open the next phase of Styldrift phase two.
The mining company said it believed the phase would bring it to 150 tons. It said the project would take two and half years.
Last year the company said it would scale down constructions of Styldrift I mine outside Rustenburg in a depressed market. RBPlat’s chief executive, Steven Phiri, said the industry was now progressing from the zone of uncertainty into a progressive zone.
The RBPlat capital expenditure share for the this project is valued at R3.2 billion.
The group’s production declined by 9 percent during the three months to September, impacted by a section 54 issued in August and the subsequent cautions approach adopted in recommencing normal operations activities. Section 54 is law that enforces health and safety at the mining industry.
Last month a single section 54 issued on its North Shaft operation resulted in 17 lost production shifts, following the death of an employee.
Phiri said the company had experienced a sharp increase in the frequency severity of section 54 instructions.
“Contrary to our publicly declared acceptance and support in the past of section 54 stoppages in the interest of safety, we are unable to reiterate the same view with regard to these stoppages and we are very disappointed,” he said.
The total capital expenditure (capex) third quarter to September soared by 42 percent to R196.7m compared with 39 percent recorded during the previous corresponding period. RBPlat reduced construction activities and the related capex on the Styldrift I project despite a sustainable depression in the platinum group metal market.
BUSINESS REPORT