4E PGM Mineral Reserves at the combined Marikana, Rustenburg and Kroondal operations increased by 12.8M 4Eoz, primarily as a result of the inclusion of the Marikana K4 project (12.7M 4Eoz) and the Klipfontein open-cast project (0.1M 4Eoz).
Both the K4 project and Klipfontein open-cast project disclosures are underpinned by feasibility studies and will be considered for development by the Board during Q1 2021.
The K4 project formed part of historic Mineral Reserve declarations by Lonmin, prior to the acquisition by Sibanye-Stillwater, which was previously excluded from company’s reporting due economic considerations. It is anticipated that, if approved, these projects will commence during 2021.
K4 project highlights:
The K4 project is a world- class brownfields project, which requires the re-start and completion of the shaft infrastructure and is planned to extract both the Merensky and UG2 reefs over a 50 year life. Production at steady state is expected to be approximately 2,25Mtpa RoM (~250koz 4E) per year.
Project capital requirements are estimated at R3.9 billion over eight years, with pay-back in six years at the Mineral Reserve price assumptions.