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Elikhulu tailings retreatment project pours first gold; Pan African announces next big project

Elikhulu tailings retreatment project pours first gold; Pan African announces next big project
Mineral Resources Minister Gwede Mantashe

Mineral Resources Minister Gwede Mantashe speaks about the state of the mining industry and the need for ethical leadership and Pan African Resources CEO Cobus Loots discusses the economic and development highlights of the Elikhulu project, in Mpumalanga. Video and editing: Nicholas Boyd.

Photo by Dylan Slater

Mineral Resources Minister Gwede Mantashe

Photo by Dylan Slater

16th August 2018

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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EVANDER (miningweekly.com) – At the inaugural gold pour at its Elikhulu gold tailings retreatment project, in Mpumalanga, on Thursday, Pan African Resources announced the company's next big project, Royal Sheba, which will be built within the company's existing mining right at Barberton, Mpumalanga, before the end of 2019.

The Royal Sheba orebody has potential to deliver an estimated 30 000 oz/y of low-cost production for Pan African.

The project will employ 300 permanent workers, said Pan African Resources CEO Cobus Loots.

Meanwhile, the R1.74-billion Elikhulu project, which uses a conventional carbon-in-leach circuit with a proprietary pre-oxidation process, will process one-million tons a month of tailings at an all-in sustaining cost of production of between $650/oz and $700/oz. The project is expected to produce about 55 000 oz/y of gold for 14 years and has created 400 permanent jobs, Pan African noted during the gold pour event, which was attended by Mineral Resources Minister Gwede Mantashe.

Elikhulu will ramp up to full production by the end of September.

The Evander Tailings Retreatment Plant (ETRP), which was the predecessor to the current plant, became a star performer in Pan African Resources' portfolio. The incorporation of the ETRP, which processes 200 000 t/m of tailings, into Elikhulu is scheduled to be completed in December, and the enlarged plant will process 1.2-million tons a month and produce about 70 000 oz/y of gold, added Loots.

The project broke ground in August last year and involved 2.5-million manhours, 2 000 t of steel, 40 000 m3 of concrete and 63 000 m3 of earthworks.

"We see Elikhulu as testament to the art of the possible. It demonstrates what can happen when business, government, regulators, capital, professionals and the community work together. We expect Elikhulu to be a flagship operation within our low-cost, long-life asset base. It is a significant milestone in our strategy of repositioning the group as a low-cost, long-life gold producer," said Loots.

During construction, the project paid R162-million to 67 local contracting companies as part of its preferential procurement programme. Pan African Resources also invested R2.4-million in upgrading the infrastructure of four local schools.

Pan African Resources group consulting metallurgist Jonathan Irons said the project uses hydraulic remining and that a whole-of-deposit approach is in place where deposits will be mined in a predetermined sequence.

Mantashe said he expected the Elikhulu project would have a positive impact on the economy of the community of Evander and exhorted beneficiaries to invest their money to grow their businesses and create new employment within the area and beyond as they grow.

"The contribution to the local economy must make a difference. I would advise that you prepare yourself for more demands as a result of the positive impact of the project. However, the Elikhulu project already has in place 30% ownership by workers, local community and empowerment partners," he said.

Fraud, corruption and bribery were anathema to the longevity, success, sustainability and developmental impact of mining, added Mantashe. He emphasised the importance of ethical leadership within mining companies, the Department of Mineral Resources and in mining stakeholders.

Loots, meanwhile, also praised the work done by consulting engineers DRA and DRA business development director Paul Howard. The Elikhulu project was completed ahead of schedule and in line with the budget.

"The professional way in which the project was executed, delivering all milestones in a safe and sustainable manner, again demonstrates the team's ability to conceptualise, plan and complete substantial growth projects," Loots concluded.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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