JOHANNESBURG, August 25 – Pan African Resources announced on Friday that the Department of Water and Sanitation has granted it a 20-year Integrated Water Use Licence for Elikhulu Tailings project in Mpumalanga.
In December, Pan African approved spending of R1.74 billion in Elikhulu project in a bid to sustain performance.
Elikhulu is a venture that is earmarked to yield 56,000 ounces of gold a year in its first eight years.
Pan African also said that it was issued with the Integrated Environmental Authorisation in terms of the National Environmental Management Act. All environmental regulatory permits are therefore in place to commence construction of Elikhulu.
Cobus Loots, Pan African chief executive, said the granting of the environmental permitting for Elikhulu was the final regulatory approval required for the construction of the tailings project.
“Elikhulu is scheduled to produce first gold in the final quarter of the 2018 calendar year and expected to produce approximately 50,000 ounces per annum for the next 13 years, at an all-in sustaining cost of less than U.S.$550 per ounce,” Loots said.
“Elikhulu’s capital expenditure of approximately R1.7 billion, or approximately U.S.$130 million, is a substantial investment in the South African mining industry and is expected to contribute materially to economic development and employment in the Mpumalanga province.”