Pan African completes Soweto gold tailings retreatment project study
The definitive feasibility study for the promising Soweto gold tailings retreatment project, west of South Africa’s Gold City of Johannesburg, has been completed, Pan African Resources reported on Friday, September 10, when the London-, Johannesburg- and Sydney-listed company headlined the study as “delivering a robust long-term growth pathway” for its thriving West Rand Mogale tailings retreatment complex.
The Soweto tailings project, designed to leverage existing Mogale elution, carbon regeneration, electrowinning and smelting infrastructure, significantly improves project economics and will come in at an estimated capital cost at R3.68-billion.
Acquired as part of the Mintails transaction, the Soweto Cluster tailings storage facilities host mineral reserves of 0.98-million gold ounces.
“We’ve been able to define a project that delivers attractive returns, meaningful production growth and accelerated environmental rehabilitation,” Pan African CEO Cobus Loots stated in a release to Mining Weekly.
The project has the resources to increase the Mogale complex’s gold production to 100000 oz/y at peak production.
Importantly, it will address historical West Rand environmental liabilities at the same time.
Gold production over the 15-year project life is expected to total 561 000 oz at a production rate of 35000 oz/y to 40000 oz/y.
The forecast all-in sustaining cost of $1750/oz to $1800/oz excludes cost savings from renewable-energy supply.
Evaluated is 600000 t of tailings retreatment a month alongside the operating Mogale tailings retreatment processing facility.
Using a gold price of $3550/oz, the project returns post-tax net present value of R1.85-billion, internal rate of return of 29.55% and a post-commissioning payback period of three years.
From the final investment decision date, which is anticipated in December, construction will take 28 months.
Environmental authorisations are expected during financial year 2027.
