Focusing on low-cost, high-value organic growth projects has seen South African precious metals miner Pan African Resources prioritise the R1.7-billion Elikhulu tailings retreatment plant (TRP) project at its Evander gold mine, in Mpumalanga, which is expected to produce 689 000 oz of gold at an all-in sustaining cost (AISC) just above the elusive $500/oz mark. “The theme in the mining industry for some time has been one of capital discipline and cost consciousness. Locally, the rand gold price is not offsetting cost pressures and the South African investment climate is also not conducive to long-term large capital investments, resulting in very few investors being prepared to make a seven- year investment for a vertical shaft, so you have to be creative,” Pan African CEO Cobus Loots tells Mining Weekly.
