Anglo American Platinum (Amplats) said on Friday it would spend nearly R4bn to extend the lifespan of its Der Brochen project in Limpopo province.
The project, which begins in the first quarter of 2022, includes the development of a new shaft to replace the depleting Mototolo reserves.
“The Der Brochen project is one example of the high-quality, low-cost expansion options we have available in our existing portfolio of assets that will allow us to continue delivering industry-leading returns to shareholders,” CEO Natascha Viljoen said in a statement on Friday.
Production from Mototolo/Der Brochen is expected to be maintained at about 250,000 ounces a year.
Amplats said the life of the project would be extended beyond 30 years and it would be a fully mechanised operation and positioned in the bottom half of the primary platinum group metals producer cost curve.
The total capital investment is expected to be R3.9bn in nominal terms, which will be spent over a six-year period.
Amplats’ shares fell 1% to R1,830.02 in early trade on the JSE, giving the platinum miner a market value of R485.8bn.
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