Mining on the Eastern limb of South Africa’s Bushveld complex – the world’s largest resource for platinum group metals (pgms)- could demand higher palladium and platinum prices than required for mining on the Western limb, says a resources analyst.

Ore mined on the Eastern limb of the Bushveld complex has a higher palladium to platinum ratio of 1:1 compared with a 1:2 palladium to platinum ratio on the Western limb. The 1:1 ratio of platinum to rhodium on the Eastern limb also means that both platinum and rhodium prices will have to be sustained at high levels for successful mining to be carried out.

Less developed infrastructure, inexperienced labour and more difficult access to the more remote area also play a role in mining on the Eastern Limb, said the analyst.

He said the area was geographically challenging which made it more difficult to access and establish mining plants here. Experienced workers would be “imported” at the start up of a mine, but mines would later recruit the majority of their labour force from local communities.

Skills would be transferred from experienced to inexperienced workers over a period of two to three years, but new workers would still not be as productive as workers with experience of many years.

“In terms of the local mining charter, commitments have been made to local communities that workers won’t just be imported from other regions, but that local communities will also come on board.”

The Eastern Limb reserves are primarily on the UG2 (Upper Group 2) reef that lends itself to mechanised mining in some spots but other parts of the reef can not necessarily be mined in this manner.

The higher grade Merensky reef comprises the main platinum bearing structure in the Western limb of the Bushveld Complex and ore from this tends to be easier to treat as it doesn’t contain such significant chrome levels.

According to Brad Mills, chief executive of Lonmin, the platinum price has to remain in excess of $1,000 per ounce at around R7 to the dollar for companies to successfully invest in the Eastern limb, while the price required for mining ore bodies in the Western limb is around two-thirds of that.

Mills told Mineweb Radio that the Eastern limb dips at an awkward degree of 25 to 45 degrees, which makes for more difficult mining here.

A number of mining houses are planning or have commissioned projects on the Eastern Limb as the majority of resources on the Western limb are already in production, or tightly controlled by the platinum mining majors.

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