JOHANNESBURG (miningweekly.com) – Noting on Thursday that Johannesburg-listed Aquarius Platinum would “more assertively” assess growth opportunities through project development, CEO Jean Nel inferred that the company had mulled the possibility of acquiring the Rustenburg assets soon to be offloaded by strike-hit Anglo American Platinum (Amplats).

“We’re continuously in discussions with Amplats, as they are our project partners, and there are opportunities that we find interesting. We are also having conversations internally and will allow Amplats to follow its [sale] process,” he indicated.

Several factors had resulted in Aquarius being able to more aggressively pursue project-related work, Nel added, including a stabilised, credible production platform, a strengthened balance sheet following a rights issue and a more positive metal price outlook.

The group would not, however, pursue projects for the sake of “chasing project ounces” but would rather aim for a strengthened balance sheet.

“Our firm view is that, at least in the short term, a project will only be pursued if it reduces overall group production unit costs, has relatively low capital expenditure (capex) requirements and, preferably, leverages off existing group infrastructure,” he outlined.

Among the projects currently being advanced by Aquarius was the Kroondal tailings retreatment project, which would see the retreatment of tailings from Kroondal K1 and K2 and the diposing of the treated tails in the Marikana pits.

Once at steady state, yearly production would be between 15 000 oz and 20 000 oz.

The project’s feasibility study was currently well advanced, with estimated capex of around $23-million.

“The main risk of this project is obtaining the relevant regulatory approvals from [the Department of Water and Sanitation] before we commit capital, which we expect by February next year,” said Nel.

Aquarius, which on Thursday released its results for the year ended June 30, was also investigating the possible capacity expansion of its Mimosa mine, in Zimbabwe.

Currently in its prefeasibility stage, which was expected to be concluded by February, the project would see a 30% increase in the plant and mine hoist capacity, generating an additional 70 000 platinum-group metal ounces a year.

Capex for this project was estimated at around $70-million.

The expansion of the group’s Platinum Mile (PlatMile) operations, in the North West, meanwhile, was largely complete, with three additional mills installed in the existing PlatMile circuit in the third quarter of the 2014 financial year.

This project, allocated capex of $2.5-million, was expected to increase recoveries by between 15% and 20%.

“While the project was completed in March, commissioning has been delayed because of the Amplats strike,” Nel noted.

Aquarius posted a 2% slump in revenue for the year to $233-million on the back of subdued PGM prices.