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Doornkop Mine

Our operations

Doornkop

Doornkop, a single-shaft operation, is located in the province of Gauteng of South Africa, approximately 30 kilometres west of Johannesburg, on the northern rim of the Witwatersrand Basin. Mining is conducted at a depth of 1 978 metres. The operation focuses on narrow-reef conventional mining of the South Reef. The ore from the operation is processed at the Doornkop plant.

Performance FY15

Doornkop’s performance was influenced by ever increasing operational costs, unplanned events (the fire and fatal accidents) and low productivity levels. Key challenges, which are receiving management’s attention, include the complex geology which necessitates frequent changes to mine layouts, logistical bottlenecks in the horizontal tramming section and the need to reduce costs significantly to improve profit margins. As Doornkop continued to incur losses, restructuring at the mine became essential given the current gold price environment and the significant capital investment required to sustain operations at this shaft. Consequently, in line with the Labour Relations Act, 66 of 1995, a Section 189A was issued at Doornkop in May 2015. Post year-end, the Section 189A process was concluded on 31 July 2015 with only 528 employees including contractors being affected, most of whom were transferred to vacant positions at other operations. The remaining 186 people chose to be re-skilled for redeployment into alternative positions within the company or accepted the voluntary severance packages offered to Doornkop employees.

Doornkop’s life of mine has been shortened to 15 years and emphasis has been placed on creating mining flexibility, achieving stoping targets, reclaiming material from older areas to reduce the cost of consumables and using exploration drilling to improve the geological information available on and confidence levels in the ore body. The new mining plan for Doornkop will focus on mining the higher-grade areas of the South Reef ore body on 192 and 197 levels.

More detailed information on safety performance can be found in the Integrated annual report.

Key statistics

    FY15 FY14 FY13
Number of employees        
– Permanent   2 977 2 836 3 238
– Contractors   493 736 842
Total   3 470 3 572 4 080
Operational        
Volumes milled (000t) (metric) 603 737 1 008
  (000t) (imperial) 665 812 1 112
Gold produced (kg) 2 663 2 603 3 631
  (oz) 85 618 83 687 116 738
Gold sold (kg) 2 711 2 633 3 550
  (oz) 87 160 84 653 114 135
Grade (g/t) 4.42 3.53 3.60
  (oz/t) 0.129 0.103 0.105
Productivity (g/TEC) 68.47 63.57 87.71
Development results        
Total metres   8 919 8 322 12 501
Reef metres   1 701 1 475 1 625
Capital metres   0 0 0
Financial        
Revenue (Rm) 1 220 1 126 1 615
  (US$m) 107 109 183
Average gold price received (R/kg) 449 857 427 728 454 937
  (US$/oz) 1 222 1 285 1 604
Cash operating cost (Rm) 1 071 1 095 1 077
  (US$m) 94 106 122
Production profit/(loss) (Rm) 128 28 573
  (US$m) 12 3 65
Capital expenditure (Rm) 245 238 285
  (US$m) 21 23 32
Cash operating cost (R/kg) 402 065 420 617 296 714
  (US$/oz) 1 092 1 264 1 046
All-in sustaining cost (R/kg) 508 743 523 839 380 935
  (US$/oz) 1 382 1 574 1 343
Safety        
Number of fatalities   1 11 0
Lost-time injury frequency rate per million hours worked   7.14 9.06 5.30
Environmental        
Electricity consumption (GWh) 205 187 216
Water consumption – primary activities (ML) 733 1 010 760
greenhouse gas emissions (000t CO2e) 211 186 214
Intensity data per tonne treated        
– energy   0.34 0.25 0.21
– water   1.26 1.37 0.75
– greenhouse gas emissions   0.35 0.25 0.21
Number of reportable environmental incidents   0 0 0
Community        
Local economic development * (Rm) 37 25 7
Training and development (Rm) 35 23 17.1

* Included in the total for FY15 is an amount of R28 million that was capitalised as part of the hostel upgrades (FY14: R10 million)

Other salient features  
Status of operation Recently completed its restructuring process. Mining takes place on the South Reef at this single-shaft operation.
Life of mine 15 years
Hoisting capacity (per month) 91 480 tonnes ( 100 839 tons)
Compliance and certification New order mining right – October 2008
ISO 14001
ISO 9001
OHSAS 18001

Mineral reserves as at 30 June 2015

  Proved reserves Probable reserves Total mineral reserves
Reserves (metric) Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
  1.3 5.00 7 3.8 5.22 20 5.1 5.16 26
Reserves (imperial)) Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
Tonnes
(Mt)
Grade
(g/t)
Gold
(000kg)
  1.4 0.146 211 4.2 0.152 636 5.6 0.151 847

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Annual report

Integrated annual report 2015
Integrated annual report 2015

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