PERTH (miningweekly.com) – ASX-listed platinum developer Nkwe Platinum, which plans to also list on the JSE, expects diversified miner Xstrata to make an investment decision on the Garatau project, in South Africa, during the fourth quarter of this year.

Speaking at the last day of the Africa Downunder conference in Perth, Nkwe MD Maredi Mphahlele also said that it would be releasing the results of the Garatau feasibility study within the next month.

Mphahlele said that Xstrata held the option to acquire a 50% equity in the 14-million platinum group metals (PGM) ounce Garatau project by fully funding the development cost of the project.

The current capital expenditure on the Garatau development is estimated at between R6-billion and R8-billion.

If Xstrata decided to exercise its option to earn a 50% stake in Garatau, it would also be entitled to fund up to 50% of the larger Tubatse project.

However, Mphahlele said that if Xstrata decided against the development of the Garatau project, Nkwe would look for alternative strategic partners.

“In case they don’t make a positive decision, the prospect is very large and very robust,” he told delegates.

Once an investment decision has been made, the mine development would take between 18 and 24 months, with the first production expected either in the fourth quarter of 2012, or the first quarter of 2013.

The mine would produce around three-million tons of ore a year, delivering around 400 000 oz of PGMs.

Mphahlele added that the feasibility study on the Tubatse project would also start in 2011.

Meanwhile, Nkwe’s listing on the JSE was planned for the first quarter of next year.