Platinum junior Eastern Platinum (East-plats) could potentially raise its overall output to 600 000 oz/y of platinum-group metals (PGMs), after implementing a phased development plan for its PGM assets on the eastern limb of South Africa’s Bushveld Complex.

The CEO of the TSX-, Aim- and JSE-listed platinum miner, Ian Rozier, last week 
announced plans to develop its assets on the eastern limb of the Bushveld Complex to produce about 400 000 oz/y of PGMs.

The rise in PGM prices in recent months prompted the miner to review the status of its three development projects on the eastern limb, namely the Spitzkop, Kennedy’s Vale and Mareesburg projects, which were placed on care and maintenance at the end of 2008.

Eastplats would invest about $227-million on phase one of the development plan, which would entail the development of the Mareesburg openpit mine to feed a 90 000-t/m 
concentrator to be built at Kennedy’s Vale.

Civil and other surface infrastructure works to prepare for a future expansion of the processing plant to 180 000 t/m would also be completed during the first phase.

Phase one was expected to deliver 
115 000 oz/y of PGMs.

The miner expected the development of the openpit mine to take 18 months after the project was approved. The mine would have a five-year life.

During these five years, Eastplats would develop the Spitzkop mine, at a cost of about $98-million, to replace the Mareesburg openpit production and boost output to 135 000 oz/y 
of PGMs.

The third phase would comprise the 
development of the Mareesburg underground mine, which would produce about 30 000 oz/y of PGMs, as well as the De Goedegevagting underground mine, which could potentially contribute up to 120 000 oz/y of PGM output.

The last phase would see the development of the Kennedy’s Vale mine, which would also contribute about 120 000 oz/y of PGMs to the overall output. Two 1 000-m vertical shafts were already in place.

Eastplats noted that it was considering a number of financing options for the first phase and would make further details available in the second half of this year.

Financing options for phases two, three and four would, however, be dependent on market conditions, future metal prices, foreign exchange rates and the revenues that were generated from the first phase of the eastern limb development projects, as well as from its Crocodile River Mine (CRM) complex, situated on the western limb of the Bushveld Complex.

Meanwhile, Rozier said that the company remained on track to increase production at the CRM operation to 210 000 oz/y by 2013, with the development of CRM’s Crocette 
underground mine proceeding as planned.

Development of the Crocette mine was 
restarted in January and was expected to eventually produce 50 000 oz/y of PGMs.

The Crocette mine development was also suspended in 2008 in response to adverse market conditions, but improved PGM prices 
and a reduction in operating costs at the CRM operations had prompted the company to 
restart the project.

Eastplats produced 130 338 oz of PGMs in 2009.

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