Located in the Machadodorp area of the Mpumalanga province, 300 kilometres east of Johannesburg Nickel mining takes place by means of an underground shaft as well as by open-pit mining Oxidised chromitite is also mined as part of the pre-strip of the future open pits.
| Management | The mine is managed as a 50:50 unincorporated joint venture with Norilsk Nickel Africa (Pty) Ltd. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resources and Reserves: (100% basis) |
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| Refining | All metal produced is smelted and refined by Metal Trade Overseas AG (MTO). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total labour | 2 744 (includes 1 943 contractors). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| F2008 | F2009 | F2010 | F2011 | F11/10 % change |
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|---|---|---|---|---|---|---|
| Metal production | ||||||
| Nickel | Tonnes | 5 136 | 4 495 | 9 666 | 10 100 | 4 |
| Copper | Tonnes | 2 605 | 2 268 | 5 210 | 5 210 | – |
| Cobalt | Tonnes | 276 | 244 | 578 | 553 | (4) |
| PGMs | Ounces | 40 813 | 26 727 | 52 574 | 53 610 | 2 |
| Chrome ore sold | 000t | 1 146 | 661 | 502 | 335 | (33) |
| Chrome concentrate sold | 000t | – | 51 | 314 | 381 | 22 |
| Operational statistics | ||||||
| Tonnes milled | Thousand | 1 070 | 1 259 | 3 308 | 5 259 | 59 |
| Head grade | % nickel | 0.70 | 0.54 | 0.45 | 0.32 | (13) |
| Average number of permanent employees | Number | 306 | 560 | 823 | 801 | (3) |
| Average number of contractors | Number | 1 190 | 2 060 | 2 100 | 1 943 | (7) |
| Financial indicators | ||||||
| Nickel on-mine cash cost per tonne treated | R/tonne | 339 | 389 | 242 | 271 | 12 |
| Cash cost net of by-products | US$/lb | (4.45) | 2.48 | 3.26 | 4.99 | 53 |
| Net sales revenue | R million | 1 996 | 1 086 | 2 439 | 2 991 | 23 |
| Cash operating cost | R million | 363 | 490 | 801 | 1 423 | 78 |
| Cash operating (loss)/profit – Total | R million | 1 192 | 181 | 916 | 824 | (10) |
| Cash operating (loss)/profit | ||||||
| – Nickel Mine | R million | 518 | (253) | 584 | 256 | (56) |
| Cash operating (loss)/profit | ||||||
| – Chrome Mine | R million | 674 | 433 | 332 | 567 | 71 |
| Average Nickel price | US$/t | 28 507 | 13 312 | 20 285 | 23 970 | 18 |
| Capital expenditure | R million | 584 | 1 756 | 1 202 | 808 | (33) |
Refer to note 2 (PDF - 62KB) for Nkomati Nickel Mine segmental informationn.
Total funds committed at 30 June 2011 amount to R3.5 billion of the total R3.7 billion approved for the capital project. The next phase of the Eskom power supply project is the upgrade of the 132kV overhead distribution lines and we anticipate this to be completed by December 2011. Nkomati’s Eskom Electricity Supply Agreement was concluded in December 2010.
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