Sibanye-Stillwater Approves Australian Copper-Gold Mine and South African Gold Mine Development

en.Wedoany.com Reported - On September 1, Sibanye-Stillwater announced that its board has approved the continued development of the Mt Lyell copper-gold mine restart project in Tasmania, Australia, and the Burnstone gold mine project in Mpumalanga, South Africa. Mt Lyell is scheduled to enter the project execution phase in the first half of 2027, targeting first metal production in early 2029. Burnstone has commenced project preparation work, with pre-production capital planned for 2027 to 2028, and the processing plant expected to begin operations in 2029. The company's 2026 capital expenditure guidance includes A$11 million for Mt Lyell and R98 million for Burnstone.

Mt Lyell is located near Queenstown, Tasmania. The board made the investment decision following the completion of an AACE Class 2 feasibility study and an internal review in the first quarter of 2026. The project plans an initial mine life of 23 years, with steady-state production expected to reach approximately 26,000 tonnes of copper, 16,000 ounces of gold, and 116,000 ounces of silver per year by around 2032. All-in sustaining costs are estimated at approximately US$2.56 per pound of copper. Based on 2026 actual prices, the project has a post-tax net present value of approximately US$550 million at a 7.4% discount rate, with a post-tax internal rate of return of approximately 20%.

Mt Lyell's estimated project capital is approximately US$340 million, with a peak cash requirement of approximately US$370 million. The above project capital excludes the shaft refurbishment works planned to be implemented after the project's actual completion, which represent an investment of approximately US$74 million. Board approval remains subject to the completion of agreements related to the previous owner or the waiver of relevant conditions. The feasibility study completed in 2025 plans to resume mining of four underground ore bodies—Prince Lyell, Western Tharsis, Cape Horn-Green Horn, and Copper Chert—using sublevel caving and open stoping methods, along with the construction of a new processing plant and the refurbishment of the historical shaft system, with a designed ore processing capacity of approximately 3 million tonnes per year.

As of the end of 2025, Mt Lyell had established mineral reserves of approximately 478,000 tonnes of copper. The project's historical underground copper mine began production in 1894 and entered care and maintenance in 2014. Sibanye-Stillwater acquired the relevant acquisition option through the acquisition of New Century Resources and subsequently exercised it, with the project's mining rights and existing underground workings and infrastructure held by its wholly owned subsidiary, Copper Mines of Tasmania.

The Burnstone project is located near Balfour, South Africa. The board approved continued advancement following the completion of a recompiled feasibility study and internal review. The project plans to mine the Kimberley Reef at an average mining depth of approximately 550 meters, with a maximum planned depth of approximately 1,050 meters. As of the end of 2025, the project holds gold mineral reserves of 2.7 million ounces and mineral resources of 8.9 million ounces. Steady-state gold production is expected to be approximately 130,000 ounces per year, with a planned mine life of 25 years.

Based on 2026 actual prices, the Burnstone project has a net present value of approximately R19.2 billion at a 10% discount rate, with an internal rate of return of approximately 36.1% and all-in sustaining costs of approximately R872,000 per kilogram during steady-state production. The project plans to invest approximately R3.5 billion in infrastructure capital over six years, of which pre-production capital through 2028 is approximately R2.5 billion. The initial R98 million budget in 2026 is allocated for project initiation and early preparation, followed by the pre-production capital phase planned for 2027 to 2028.

Burnstone already has underground drives, a ramp and shaft connection system, ore transport and hoisting facilities, and some surface infrastructure. Construction of the project was previously restarted in 2021, and in 2024, further investment was suspended during a period of capital expenditure contraction, with the project placed into care and maintenance. The feasibility study was subsequently recompiled. Following this round of board approval, project preparation work has recommenced, with the processing plant planned to commence operations in 2029, after which gold production will gradually ramp up to a steady-state level of approximately 130,000 ounces per year.