en.Wedoany.com Reported - Sibanye-Stillwater's K4 platinum group metals (PGM) project, located in Marikana, North West Province, South Africa, has a total capital expenditure of R4.4 billion. Based on the 2026 real value, the remaining project capital of R964 million will be spent this year and next year.
The project is expected to achieve steady-state production by 2033, with an economic life of 48 years, particularly benefiting the communities in the Rustenburg municipal area. Production ramp-up at K4 began in the second quarter of 2022, and it is projected to employ 4,380 people upon reaching steady state.
During the construction phase, K4 has 64 mining crews in operation, while steady-state production in 2032 will require 107 crews. The project is 77% complete, with a net present value of R17.6 billion, leveraging extensive existing infrastructure.
The expected monthly rock breaking rate is 39,000 square meters per month, with a monthly hoisting volume of 190,000 tons per month, equivalent to 21,000 ounces of 4E per month and 250,000 ounces per year at steady state. The ore body composition is 55% Merensky Reef and 45% Upper Group 2, which is considered key to Sibanye-Stillwater's PGM division smelting strategy.
Sibanye-Stillwater began its PGM operations in mid-2016 with the acquisition of Aquarius Platinum. Later that year, it acquired the Rustenburg Platinum Mine from what was then Anglo American Platinum (now Valterra Platinum). K4 was acquired from Lonmin in 2019, marking the end of Sibanye-Stillwater's South African PGM acquisition strategy.
Sibanye-Stillwater's underground PGM operations include six trackless mechanized operations and eight conventional operations, employing a total of 44,000 people, including both own employees and contractor employees. Since its inception, the PGM business has consistently met annual guidance targets. Production has slightly declined due to a closure at Marikana and the end of life at one mine in Kroondal, but this has been offset by the gradual build-up of the K4 operation.
Dawie van Aswegen, Executive Vice President of Mining Operations at Sibanye-Stillwater, stated during a presentation on the company's South African PGM operations that the ore body is homogeneous, extending 70 kilometers from east to west with a constant 9-degree dip from south to north. The operations range from Brits to Rustenburg, located in the lower western limb of the PGM-rich Igneous Bushveld Complex.
Operating costs per 6E ounce are described as being among the lowest in the peer group, and sustaining capital expenditure per 6E ounce is also lower than two peers. Over the past few years, an average of approximately R4.5 billion has been spent annually on ore reserve development and sustaining capital requirements. Ongoing ore reserve development is underway at conventional mines, and since 2023, sustaining operations per 6E ounce have performed well compared to peers.
The main mining profile (excluding projects) is steadily declining, but van Aswegen noted that this excludes the East 4, Siphumelele, and Thembelani projects. Cost forecasts remain competitive, with all sustaining costs benefiting from by-product credits, including chrome. Overall, sustaining capital expenditure accounts for 9% of total operating costs for trackless mobile machinery operations and 7% for conventional operations.
Van Aswegen stated that since 2016, the company has shown significant improvement along the cost curve, currently positioned in the third quartile, considering the project capital investment in K4. However, it can move further down the cost curve in the future, particularly with new projects coming online. Mining integration across continuous boundaries is unlocking additional value, with mine connectivity improving mine planning flexibility and sequencing, existing infrastructure and shared services reducing production lead times, and new open-pit mining opportunities being considerable.
