Image credit: Petra Diamonds
The key drivers of Project 2022 are to identify bottlenecks and increase throughput capacity and capacity utilisation at all of Petra's mines while improving cost and process efficiencies.
"Project 2022 has been very successful in increasing throughput and throughput ideas are targeting an estimated annualised contribution of [about] $70 million by the end of FY 2021," it said.
"This may be negatively impacted by various factors including the very significant rainfall at Finsch and Koffiefontein in December through to February 2021, COVID-19 and Williamson remaining in care and maintenance."
Petra also said it is expected that Project 2022's cost-saving initiatives will deliver an annualised contribution of about $22 million from the end of the third quarter of the fiscal year 2021.
"The key cost savings initiatives driving this saving are reduced water cost at Finsch, ventilation efficiency improvement at Cullinan and savings on electricity," it said.
"The design phase of the Organisational Design Review, which forms part of Project 2022, has been completed and will provide for more focused delivery of support by the various Group functions to the operations and alignment of operational structures across the different sites."
The implementation of Project 2022 was cited as one of the factors that helped Petra's profit from mining activities less exploration and corporate overhead (adjusted EBITDA), jump by 20% to $80.8 million from $67.2 million, the corresponding period last year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
