Pan African Resources’ newest gold tailings retreatment project, the Mogale Tailings Retreatment (MTR) Project, is advancing ahead of schedule and under budget. Situated near Krugersdorp on Gauteng’s West Rand, the project aims to yield 60,000 ounces of gold annually over a 21-year lifespan at an all-in-sustaining cost (AISC) of less than $900 per ounce.
CEO Cobus Loots has announced that the construction of the MTR Project is nearing completion. The plant commissioning and first gold production are anticipated in October 2024, with steady-state production expected by December.
In addition to creating 500 jobs, mostly for local personnel, the project aims to address years of environmental damage caused by historic gold mining. Pan African chairperson Keith Spencer emphasized the company’s commitment to making a positive impact on the site.
Removing the unsightly and hazardous tailings will also help fill abandoned underground tunnels, eliminating illegal mining activities. The rehabilitated land can then be repurposed for economic uses like factories, industry, and housing.
The independent feasibility study for a new solar plant at the MTR site is expected to be finished by the end of September. Solar plants are already standard at Pan African’s other operations. In the Fairview gold mine, which is part of the Barberton Mines complex in Mpumalanga, the construction of an 8.75 MW solar PV generating plant has been completed. The first power generation is expected next month and will provide 15% of Barberton Mines’ energy needs. This will result in an annual savings of $2.4 million in electricity costs.
The Evander Mines and Barberton Mines solar PV plants are funded by a $19.4 million, five-year green loan facility, which also includes an accordion option of $13.9 million for future renewable energy projects.
Pan African has consistently met its production guidance while improving safety rates. For the year ending June 30, the company reported a 6.2% increase in production, totaling 186,039 ounces, with an average gold price of $2,021 per ounce.
The Barberton Mines produced 71,470 ounces, Evander Mines underground 40,869 ounces, Elikhulu 54,812 ounces, and Barberton Tailings Retreatment Plant (BTRP) 18,888 ounces. The AISC for the reporting period is expected to be $1,350 per ounce.
The Elikhulu and BTRP tailings retreatment operations are among the lowest-cost producers in Southern Africa. The commissioning of a new ventilation shaft hoisting system at Evander Underground will reduce reliance on the current conveyor system, improving production and facilitating development.
In the past year, Pan African reduced its total reportable injury frequency rate to 5.47 per million person-hours, and its lost time injury frequency rate improved to 1.62 per million person-hours.
Annual financial results will be presented in September, providing more details on operational and project developments.
Source: Mining Weekly
