Name and Location
Bakubung platinum-group metals (PGMs) mine project, Bushveld Complex, South Africa.

Client
JSE-listed Wesizwe Platinum.

Project Description
The Bakubung platinum mine project, formerly known as the Frischgewaagd-Ledig project, is located in the western limb of the Bushveld Igneous Complex, north of the City of Rustenburg, in the North West.

The project entails the construction of a PGM mine on Wesizwe Platinum's core assets.

The project will consist of an underground mine and takes into account the establishment of all surface infrastructure, servitudes for bulk power and water supply, the sinking and equipping of ventilation and main shafts, the associated underground infrastructure, the ancillary excavations and the access development to establish a footprint for full production.

The proposed access to the orebody will be through the sinking of an independent twin vertical-shaft system. This will comprise a 1 000-m-deep, 8.5-m-diameter downcast men-and-materials and hoisting shaft, as well as a 930-m-deep upcast ventilation shaft of 7.5 m diameter. The shafts will be strategically positioned to provide the most effective access to both reef horizons.

The mine is specifically designed for optimum flexibility in terms of mining method (conventional, mechanised or hybrid) and allows for fast production build-up to enhance shareholder value in the project.

The project has an estimated life-of-mine of 35 years at a production rate of 230 000 t/m, producing an average of 350 000 oz/y of platinum-group elements during steady state production. Initially, 180 000 t/m will be mined from the Merensky reef, with the balance being from the secondary UG2 ore. After the Merensky reef is depleted, between 10 and 15 years from the start of production, the full 230 000 t capacity will be generated from UG2 ore. .

The mine will permanently employ a minimum of 3 200 workers when in full production, of whom 120 would work at the process plant and 1 800 underground.

Value
The capital cost estimate for the project is forecast at R7.9-billion and with expected inflation and cost escalation, is expected to rise to R12-billion.

Duration
Main commissioning is scheduled for 2018 and full production is expected in 2023.

Latest Developments
The credit committee of the China Development Bank (CDB) has approved the $650-million loan for the development of the Bakubung project in November 2012.

The first trench of a $100-million loan was put in place in December, 2012, and the other $100-million will be in place once the $650 million long-term loan precedent conditions have been finalised, including the contract and account agreement.

The funding arrangements are in accordance with the terms and conditions of investment entered into between Wesizwe and China-Africa Jinchuan Investments, agreed to in terms of the subscription agreement signed between the parties in May 2011.

JSE-listed Wesizwe Platinum’s new COO Paul Smith has said that he has confidence in the viability of the company’s flagship Bakubung platinum project, despite the volatile nature of South Africa’s platinum sector.

He notes that the project is being constructed on a virgin orebody that contains competitive ore grades, compared with other mines in the area, which adds to its viability.

Meanwhile, construction of the project is on schedule and within budget.

The 30-m-high ventilation shaft, which was put up three weeks ago, is currently 170 m below ground with permanent sinking to start in March.

The first blast at the main shaft, which was carried out in September 2012, is currently 71 m deep and will eventually reach 1 km and reach a capacity of 230 000 t of ore and 40 000 t of waste a month.

The shaft’s headgear assembly is 70% complete and will be erected in May or June. 

The winder houses at both shafts were completed at the end of 2012, with commissioning of both shafts scheduled for the third quarter of 2018.

The 8 MW Phase 1 power supply for the project was completed at the end of January 2013, with Phase 2 to start soon. The second phase will supply Bakubung’s 66 MW power requirement when it reaches full production.

Looking ahead, Smith says Wesizwe’s focus will be to safely sink Bakubung’s shafts within budget and on schedule, while also turning its attention to other speciality metals.

Key Contracts and Suppliers
TWP Projects (feasibility study and current engineering, procurement and construction management contract); Scribante Construction (earthworks and civil work Phase 1); Benco Engineering (blasting); Blast Management & Consulting (blast monitoring); Eskom (power supply); Liviero (civil earthworks and concrete) and Aveng Grinaker-LTA Mining (shaft-sinking contract).

On Budget and on Time?
The project is on schedule and within budget.

Contact Details for Project Information
Wesizwe Platinum, Hamlet Morule, tel +27 11 994 4600, fax +27 11 944 4601 or email hamlet@wesizwe.com.
Scribante Construction, tel +27 11 466 9232, fax +27 11 466 9233 or email office@scribanteconstruction.co.za.
TWP Projects, tel +27 11 218 3000, fax +27 11 218 3100 or email twpinfo@twp.co.za; or MD Digby Glover, email dglover@twp.co.za.
Aveng Grinaker-LTA, +27 11 578 6000 or fax +27 11 578 6161.