Photo by: Creamer Media
Wesizwe has resolved to implement a new mine plan at its Bakubung mine, in Rustenburg, which will entail the development of a one-million-tonne-a-year mine with a one-million-tonne-a-year processing plant to treat the ore.
The company explained in a news release that the decision was taken as a result of reduced platinum group metals demand, which has created a negative environment for the mining industry and negatively impacted on Wesizwe’s ability to raise the required additional funding to commission a three-million-tonne-a-year mine and processing facility.
Further, given the low platinum price, the Wesizwe board has decided to reprioritise expenditure by curtailing all nonproduction expenses, where possible, and to allocate all resources to complete the development of the Bakubung mine “to a producing mine system in order to enable business sustenance”.
The smaller mine will be operational for five years from 2021 to 2026.
Thereafter, and subject to market conditions, the board hopes to approve a plan to scale the mine back up to a two-million-tonne-a-year operation.