London, England — MININGREVIEW.COM — 30 April 2008 – Global mining and natural resources leader Anglo American plc is developing major growth and replacement projects worth US$12 billion (more than R90 billion), and is considering further major projects with an estimated potential cost of around US$29 billion (R220 billion).
In its review and production report for the quarter ended 31 March 2008 released here, Anglo American confirmed that two of its platinum projects in South Africa would cost a combined total of almost US$1.5 billion (R11.5 billion).
The Mogalakwena North expansion project began ramping up in March 2008, and is approaching a production volume of 230 000 oz pa of refined platinum. This project involved capital expenditure of US$692 million (R5.3 billion). The US$800 million (R6.1 billion) Twickenham expansion – approved in February this year is scheduled to begin production in 2012. Its output will be 180 000 oz pa of refined platinum.
The review pointed out that the other major approved South African initiative was the Sishen iron ore expansion project. In production since the end of 2007, the US$754 million R5.7 billion) project will have an eventual production volume of 13 Mtpa.
Among the new approved projects is one in South Africa – the Zondagsfontein coal project. This US$505 million (R3.8 billion) initiative is scheduled to launch production in 2009, and will have an eventual production rate of 6.6 Mtpa of thermal coal.
Anglo American’s first quarter production – particularly platinum group metals and coal – was adversely affected by power constraints in South Africa and power constraints and weather conditions in South Africa and Australia.
The group’s energy task team continues to address critical issues in relations to power supply constraints in South Africa, focusing on short-term supply constraints, enhanced emergency power provisions, and supplementary power generation for the short, medium and longer term requirements of mining operations, the review concluded.