Name of the Project
Bakubung Platinum Mine (BPM) project.

Location
The BPM project is located on the western limb of the Bushveld Igneous Complex, north of the City of Rustenburg, adjacent to the well-known Sun City Complex, in the North West.

Client
Wesizwe Platinum.

Project Description
The project entails the construction of a platinum-group metals (PGMs) mine on Wesizwe Platinum’s core assets.

The mine will comprise an underground mine, with a twin vertical shaft system, a production shaft and a services shaft, which will also function as the second escape route and a process plant. An optimisation study completed on the project in 2014 increased mine capacity by 8.7% to 250 000 t/m of run-of-mine ore at full capacity.

The key results of the optimisation study included:
• semimechanising all development;
• 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 increased production rates;
• the substantial use of conveyor belts and chairlifts to transport ore and mineworkers respectively;
• using three 6.1 m raisebore shafts to further assist with ventilation distribution;
• increasing hoisting capacity to support increased production rates;
• removing underground infrastructure to surface, including primary crushing; and
• revising the shaft pillar strategy, which will be mined at the end of the mine’s life.

A combination of conventional and mechanised methods will be employed.
The Merensky and UG2 reefs will be mined using conventional stoping, with mechanised mining used in all the development to access the two reef horizons.

The concentrator design, emanating from the results of the testwork conducted during the bankable feasibility study, is based on a standard PGM plant layout.

Options for collaboration in developing synergies with neighbouring mines are continually being investigated to exploit benefits from economies of scale and sharing capital infrastructure costs. BPM will have a 35-year life-of-mine.

Potential Job Creation
Once the mine has reached full production, it is expected to have an estimated 3 190 employees.

Net Present Value/Internal Rate of Return
Not stated.

Value
According to the optimisation study, the control budget estimate of nominal capital expenditure decreased from R12.03-billion to R10.69-billion, primarily as a result of the significantly improved ramp-up timeframe to full production.

Duration
The main commissioning of the mine is scheduled for the fourth quarter of 2017, with full production expected by mid-2022.

Latest Developments
The BPM continues to progress in line with targeted milestones.

The main shaft commissioning is nearly complete, with the first two conveyances installed in the shaft barrel.

One of the conveyances has been commissioned, while the other is still in commissioning.

The next critical activity is installing the rock skips and commissioning the hoisting system by the end of this year.

The inquiry process for the process plant has also been completed and order placement is planned to start in 2018.

Mine services, such as power, water and housing, are critical to the overall success of the developing project. Wesizwe is running parallel projects in these areas to ensure that the availability of these services are well within the critical path of the developing project.

The capacitor bank for the first 40 MVA transformer has been commissioned and energised.

The second 40 MVA transformer has been commissioned and energised from Eskom’s side.

BPM has, however, not yet closed the breaker to start taking load on the second transformer. It will wait until it has fully commissioned the second capacitor bank before admitting load on the second transformer to reduce power waste.

The designs for the plant substation have advanced steadily and all the documentation will be handed to Wesizwe on completion of the design.

Investigations to reduce the underground scope and production build-up have also started to curb asset dilution owing to the current platinum price.

Key Contracts and Suppliers
Eskom (power supply), LT Services (surface road infrastructure), EBJ Mining Construction (development and construction labour), Kamano group (trackless mine machinery maintenance), NHI (conveyor structure), Howden (ventilation fans) and Louwill (shaft equipping.

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

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.morule@wesizwe.com.