PERTH (miningweekly.com) – Embattled developer Nkwe Platinum may soon be awarded mining rights on three of its key platinum farms in South Africa.

The Australia-listed company is also said to be nearing the completion of joint venture (JV) discussions and a bankable feasibility study (BFS) for its Garatau project, which consists of the Garatouw and De Kom farms.

It is understood that an announcement could be made this week.

A 2010 initial bankable feasibility study found that the Garatau project could support average production of between 240 000 t/m and 400 000 t/m, over an initial mine life of 40 years.

The initial study also estimated a capital investment of between R6.5-billion and R8.3-billion would be required to develop the project.

The results from the optimised BFS has been pushed back from its initial delivery date of May 2011, as the company sought to finalise JV negotiations.

Nkwe was aiming to develop its Garatau and Tubatse projects into a combined yearly production of more than one-million ounces of platinum-group metals, from a mineral resource of 60.5-million ounces.

The Tubatse project, which consists of the Hoepakrantz, Nooitverwacht and Eerste Geluk farms, has been the subject of much contention since the South African Constitutional Court stripped Nkwe’s black economic-empowerment partner Genorah Resources of prospecting rights on two of the three farms.

In 2010, the court set aside the prospecting rights on the Nooitverwacht and Eerste Geluk farms on the grounds that Nkwe’s controlling shareholder Genorah Resources did not communicate properly with the Bengwenyama community.

Since that time, Genorah has regained its rights over both farms; however, the awarding of the prospecting rights for the Eerste Geluk farm has again been met with discontent, as the Bengwenyama community vowed to appeal the decision.

All five of the farms making up the Garatau and Tubatse project have also been at the heart of a struggle with major Anglo Platinum, and South African miner African Rainbow Minerals (ARM).

In December last year, Nkwe and Genorah initiated discussions with Anglo Platinum and ARM, as well as the Department of Minerals Resources in order to settle a long-standing dispute as to the ownership of the five farms.

The matter had initially been settled in Nkwe’s favour in 2008, however, the platinum developer restarted negotiations to further conclude a binding court-approved settlement.

Earlier this month, Nkwe reported that it expected to resolve this ownership dispute shortly.

Nkwe’s shares on the ASX have been suspended since November 9, last year.
 

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