JOHANNESBURG (miningweekly.com) – When the Mining Weekly team of three arrived at the initial sod-turning event of Pan African Resources’ gold-from-dumps project just over a year ago, the area west of Johannesburg looked a little wild.

Construction mafia inhibited entry to the site along the mapped route provided and Mining Weekly was directed to follow a vehicle that led several attendees along a non-disrupted road to the still undeveloped site.

It was only after we had listened to all last year's turning-of-the-first-sod speeches and were about to leave that those wanting to disrupt the event reappeared.

Returning on Thursday, 3 October 2024, for the official commissioning of the Mogale Tailings Retreatment (MTR) operation was a completely different and very positive set of new circumstances.

On site were more than 1 600 employees, the bulk of them from the local community, whose members have helped to develop what is an example of environmental, social and governance (ESG) at work.

MTR has gone all-out to engage with the local community and the illegal mining activity that dogged the area during Mining Weekly’s initial visit is now a pale shadow of its former self.

“This project isn’t merely about reclaiming precious metals,” Pan African group ESG manager Barry Naicker highlighted in his address.

Underway is environmental rehabilitation on a far-reaching scale with land on the way to being set free again and water quality being uplifted.

MTR has positively impacted the lives of the West Rand community, creating general, semi-skilled, and skilled occupations, with 748 employed from Mogale, while the community stands to benefit from the emergence of healthier ecosystems.

Earthworks, civil construction services, land rehabilitation, overland piping, carbon-in-leach tank building, plant hire, and transportation have been provided by 44 contractors, many of them local.

Enabling a safe, peaceful and stable environment for all stakeholders to prosper has informed MTR’s initiatives in combating illegal mining activities and organised crime that have plagued the West Rand.

“The MTR project allowed Pan African to implement an integrated and multi-faceted security model in an area known to be a hotspot for lawlessness and high levels of serious crime,” was Naicker’s assessment.

With the assistance of the company’s specialised third-party security service providers and support from local, provincial and national policing structures, MTR has improved the safety and security of the new mining footprint.

“We take extreme pride in delivery and getting things right,” said Pan African CEO Cobus Loots.

“We look forward to remining for the benefit of all of our stakeholders for many decades at MTR.”

The R2.5-billion MTR has come in below budget in 14 months. Payback of the initial investment is expected in two to three years with estimated all-in sustainable cost below $1 000/oz, at a time when the gold price is $2 500/oz.

Interestingly, the London- and Johannesburg-listed company has advanced significantly in gold recovery from surface dumps at Elikhulu, BTRP in Barberton, which is where it all started on surface for the company, and now MTR, which will be producing 50 000 oz to 60 000 oz a year for 20 years or more with the potential of the Soweto Cluster being next.

REGIONAL HISTORY

As outlined by Naicker, Mogale wa Mogale (c. 1810 - c. 1869) – from whence Mogale City gets its name – was the area’s Sotho-Tswana leader, whose legacy is honoured by the Mogale City local municipality in the West Rand District of Gauteng, as well as the Magaliesberg Mountains, the town of Magaliesburg, and the Magalies river, all bearing his name Magalie, a Mogale variation.