Mineral resource and
mineral reserve statement 2014
Supplement to the integrated annual report 30 June 2014
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Introduction
Implats' mineral resource and mineral reserve key features

The main features relating to Implats' mineral resources as at 30 June 2014 relative to 30 June 2013 are:

  • Estimated total attributable mineral resources decreased by 7% (30Moz 4E) to 395Moz; the total attributable platinum ounces decreased by 8% (18Moz Pt) to 212Moz
  • Attributable platinum mineral resources remain dominated by Zimplats and Impala. Some 47% of the attributable Implats mineral resources is hosted by the Great Dyke; the Zimplats mineral resources make up the bulk of these (45%)
  • The year-on-year comparative decrease can be ascribed to the exclusion of some deeper mineral resources at Impala and Afplats as their eventual economic extraction is in doubt and under review. The bulk of these mineral resources are in the inferred category.

The main features relating to Implats’ mineral reserves as at 30 June 2014 relative to 30 June 2013 are:

  • Total attributable mineral reserves decreased by 15% (5Moz 4E) to 50Moz; the attributable platinum ounces decreased by 15% (4Moz) to 28Moz
  • Some 69% of the total attributable mineral reserves are located at Impala, where it is evenly spread between Merensky and UG2; however, the quantum of proved Merensky reserves remains lower than desired
  • Mineral reserves are reasonably spread between the different reefs; the Merensky Reef contributes the lesser proportion of the Group’s attributable mineral reserves
  • The overall year-on-year comparative decrease is mainly due to the restatement of the Zimplats ore reserves where the conversion from mineral resources is now aligned to the Implats standard.

 

Attributable mineral resources of 212Moz Pt
as at 30 June 2014

     
Zimplats 45%
Impala 28%
Tamboti 11%
Afplats 6%
Imbassa and Inkosi 4%
Marula 3%
Mimosa 2%
Two rivers 1%
     

Attributable mineral reserves of 28Moz Pt
as at 30 June 2014

     
Impala 28%
Zimplats 11%
Marula 3%
Mimosa 2%
Two rivers 1%
     
     
     

 

Implats attributable mineral resources (Moz 4E) contribution
by area

Implats attributable mineral reserves (Moz 4E) contribution
by area

 


 


Ngezi concentrator

2014 impact

The protracted industrial action at Impala during 2014 had a material impact, particularly in terms of lost revenues, delays in project and development build-up profi les, start-up processes and the resultant reduced volumes projected for 2015. Together with tempered metal prices it is expected that profit margins at Impala will be under pressure in the medium term. The mineral reserve statement is based on the life-of-mine production plans compiled in December 2013, with some adjustment for the impact of the industrial action. This will be adjusted should the outlook change.

The Zimbabwean Government has been pursuing greater participation in the mining sector by indigenous Zimbabweans. Implats is continuing to engage with the Government of Zimbabwe (through the Ministry of Youth Development, Indigenisation and Empowerment) with respect to agreeing plans for the indigenisation of Zimplats and Mimosa.

The current position with regards to the implementation of the Government of Zimbabwe indigenisation plans is not clear and depending on what position is ultimately taken by the Government of Zimbabwe Implats’ attributable mineral resources and mineral reserves may be signifi cantly reduced.

During 2013, the Government of Zimbabwe gazetted its intention to compulsorily acquire a large tract of ground in the northern portion of the Zimplats mineral lease containing 54.62Moz Pt; Zimplats subsequently submitted an objection to this notice and lodged a claim for compensation under the Zimbabwean law. As at 30 June 2014, there have been no further developments.

At Zimplats a low angle shear in the deeper sections of the Bimha Mine has a deleterious effect on pillar strength and has resulted in the inclusion of large barrier and regional pillars and a reduction in extraction percentages. Subsequent to 30 June 2014, the pillars in a signifi cant part of Bimha have failed. A decision was made to temporarily close the Bimha Mine to ensure the safety of our employees. Work is underway to assess the full impact and to re-engineer and/or arrest the current mine stability concerns at the Bimha Mine.

Implats’ mineral reserves at a glance

The allocation of Implats’ mineral reserves per shaft infrastructure is depicted in the accompanying graphic illustration. The range below surface and quantum related to the infrastructure is shown and depicts among others the advantage at Zimplats in this regard.

Platinum mineral reserve and depth range for individual Implats shafts