Name and Location
Bakubung platinum group metals (PGMs) mine project, North West, 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 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 the project’s shareholder value.

An optimisation study has increased mine capacity by 8.7% to 255 000 t/m of run-of-mine ore at full capacity.

The key results of the optimisation study include:
• semimechanising all mining;
• shortening the shafts through the removal of underground crushing, and bringing level development close to reef horizons (on-reef development), which will result in a substantial reduction in off-reef development and an increase in hoisting capacity to support the increased production rates;
• the substantial use of conveyor belts to transport ore, and chairlifts for the transport of mineworkers;
• using a third 6 m raise-bore shaft to further assist with ventilation and logistics (men and material) and to allow for the second alternate exit;
• increasing hoisting capacity to support the increased production rates;
• removing underground infrastructure to surface, including primary crushing; and
• revising the shaft pillar strategy (to be mined at end of mine life).

Value
According to the optimisation study, the control budget estimate of nominal capital expenditure is expected to decrease from R12.03-billion to R10.69-billion, primarily as a result of the significantly improved ramp-up timeframe to full production. Real capital cost has resulted in a 9% increase, largely owing to the cost of capital equipment designed to reduce operating costs over the life-of-mine, including conveyor belts and chairlifts.

Duration
The initial 230 000 t/m production level is now planned for October 2020, as opposed to December 2022.

Latest Developments
Wesizwe reached another milestone at its flagship Bakubung platinum mine project in December 2014.

Despite facing tensions in the platinum belt during 2014, continual progress was made in sinking the main and ventilation shafts at the project, with the intersection of the Merensky reef a mere 11 m away from the current level of the main shaft.

The intersection of the secondary upper group two reef was expected to be reached soon.

Meanwhile, the ventilation shaft, which will reach its final depth of 880 m in September 2016, was 144 days ahead of schedule.

The implementation of an adopted optimisation plan early in 2014 has ensured that the mine, boasting a 30-year life-of-mine, will undergo its main commissioning in the fourth quarter of 2018, before being ramped up to full production in 2020.

A feasibility study has also started on the first phase of the housing project, which will consider off-balance-sheet funding options.

Bakubung will also shortly start construction of the access roads for the mine.

During 2015, Bakubung will start its waste development programme and Phase 2 of the power supply project, commission the bulk water supply and embark on key shaft bank installations.

Key Contracts and Suppliers
WorleyParsons (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 two-and-a-half years ahead of schedule.

The cost of the project has been reduced from R12.03-billion to R10.69-billion.

Contact Details for Project Information
Wesizwe Platinum executive: corporate affairs and investor relations 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.
WorleyParsons, tel +27 11 218 3000 or fax +27 11 218 3100.
Aveng Grinaker-LTA, +27 11 578 6000 or fax +27 11 578 6161.