JOHANNESBURG (miningweekly.com) – Diversified mining company African Rainbow Minerals (ARM), which has reached agreement to increase its holding in the Two Rivers platinum mine to 54%, is keen on enlarging its overall platinum base still further.

The Two Rivers mine on the eastern limb of the Bushveld Complex achieved record production volumes of 400 722 oz of six element platinum-group metals in the 12 months to June 30.

“We like what we’ve got in platinum,” said ARM CEO Mike Schmidt, when questioned by Mining Weekly Online on the commodities the JSE-listed diversified mining company found most promising in the current commodity environment, “and we think, based on what we are seeing now, of getting more platinum and building up that critical mass, provided the operation is on the right side of the cost curve, is mechanised, lends itself to mechanisation.” (Also watch attached Creamer Media video interview).

ARM already has an effective 41.5% interest in the Modikwa platinum mine, where local communities own 8.5% and Anglo American Platinum the remaining 50%.

On the prospecting front, the company has 49% of the Kalplats platinum prospecting right, in which Platinum Australia holds 44% and Anglo American 10%, plus the Kalplats extended area prospecting right, in which ARM and Platinum Australia are joint 50:50 holders.

Modikwa’s North shaft is being deepened and its new South Two shaft sunk.

Schmidt emphasised ARM's ongoing full commitment to iron-ore and manganese and that the company had no intention of exiting copper as such, even though it was weighing its options at the Lubambe copper venture in Zambia, where it is in joint venture with the giant Vale of Brazil. 

ARM reported a basic earnings loss of R565-million in the 12 months to June 30, on a R1 404-million first-half impairment of the Lubambe assets. (Also watch attached Creamer Media video interview).

The global demand for high-grade manganese is increasing and ARM's manganese in the Northern Cape, which is being modernised at a capital cost of R6.7-billion, has the flexibility of both high-grade and low-grade material and is in ramp up from an existing capacity of three-million tonnes a year to a capacity of four-million tonnes a year.

“We see that with emerging players mining a lot of low-grade material and flooding the market, we’ve seen the volatility in prices.

“We've been very clear that we also need to exploit the higher-grade seam on the Nchwaning orebodies and overlaying the existing seam one, we also want to exploit the overlying number-two seam, which is also high grade. But it needs that whole infrastructure upgrade,” Schmidt told Mining Weekly Online.

Modernisation of logistics is dovetailing with Transnet demands and the implementation of automated articulated precision loading is part of the requirement needed by the State-owned rail transport enterprise, which is ramping up manganese export capacity at the Port of Ngqura in the Eastern Cape.

The upgrade of the Nchwaning Two shaft is on schedule and sales volumes are being maintained from stockpiles during the shaft shutdown

Growth in production volumes at Black Rock mine will be aligned to market demand and logistics capacity.