Name and Location
Bakubung platinum-group metals (PGMs) mine project, Bushveld Complex, South Africa.

Client
JSE-listed Wesizwe Platinum.

Project Description
The Bakubung platinum mine project, formerly known as the Frischgewaagd-Ledig project, is located in the western limb of the Bushveld Igneous Complex, north of the City of Rustenburg, in the North West.

The project entails the construction of a PGM mine on Wesizwe Platinum's core assets.

The project will consist of an underground mine and takes into account the establishment of all surface infrastructure, servitudes for bulk power and water supply, the sinking and equipping of ventilation and main shafts, the associated underground infrastructure, the ancillary excavations and the access development to establish a footprint for full production.

The proposed access to the orebody will be through the sinking of an independent twin vertical-shaft system. This will comprise a 1 000-m-deep, 8.5-m-diameter downcast men-and-materials and hoisting shaft, as well as a 930-m-deep upcast ventilation shaft of 7.5 m diameter. The shafts will be strategically positioned to provide the most effective access to both reef horizons.

The mine is specifically designed for optimum flexibility in terms of mining method (conventional, mechanised or hybrid) and allows for fast production build-up to enhance shareholder value in the project.

The project has an estimated life-of-mine of 35 years at a production rate of 230 000 t/m, producing an average of 350 000 oz/y of platinum-group elements during steady-state production. Initially, 180 000 t/m will be mined from the Merensky reef, with the balance coming from the secondary upper group two (UG2) ore. After the Merensky reef is depleted, between 10 and 15 years from the start of production, the full 230 000 t capacity will be generated from UG2 ore.

The mine will permanently employ a minimum of 3 200 workers when in full production, of whom 120 would work at the process plant and 1 800 underground.

Value
The capital cost estimate for the project is forecast at R7.9-billion and, with expected inflation and cost escalation, is expected to rise to R12-billion.

Duration
Main commissioning is scheduled for 2018 and full production is expected in 2023.

Latest Developments
Wesizwe continues to advance the development of its flagship Bakubung mine, with the headgear construction about three-quarters complete and the primary shaft being at a depth of 120 m.

The headgear construction will be completed by the end of May, after which the focus will return to the continued sinking of the dual shafts.

The 85-m-tall headgear, weighing more than 1 860 t, will be one of the largest in the southern hemisphere, once completed.

Once completed, the main shaft will have a hoisting capacity of 230 000 t/m of ore and 40 000 t/m of waste, with 180 000 t/m of ore mined from the Merensky reef and the balance sourced from secondary UG2 reef ore.

The complex will include a processing plant located adjacent to the mine shafts to treat and produce a concentrate and four underground crushers.

“The decision to install the crushers underground was largely driven by the noise pollution that above-ground crushers would inflict on the local community, some of whom reside within 800 m of the site,” says Bakubung project executive Jacob Mothomogolo. He notes that there may need to be a trade-off in this regard at a later stage.

The crushed ore will be separately stored in large silos, while the reef ores will be hoisted and poured onto separate stockpiles before being moved to the mills at the planned concentrator plant.

Meanwhile, the water-supply feasibility study has been completed and includes a detailed engineering and costing evaluation.
Water supply contracts have been negotiated in terms of a joint venture with Maseve Investments, and a capital programme and standard water-use offtake agreement has been negotiated with Magalies Water.

Further, while parastatal Eskom has delivered the Phase 1 permanent power supply of 8 MVA to the project site, Wesizwe cannot, as yet, confirm that it will have the capacity to provide the power required for Phase 2.

The company is engaged in ongoing discussions with Eskom in this regard.

Key Contracts and Suppliers
TWP Projects (feasibility study and current engineering, procurement and construction management contract); Scribante Construction (earthworks and civil work Phase 1); Benco Engineering (blasting); Blast Management & Consulting (blast monitoring); Eskom (power supply); Liviero (civil earthworks and concrete) and Aveng Grinaker-LTA Mining (shaft-sinking contract).

On Budget and on Time?
Besides a few deficit metres in the ventilation shaft, the project is on schedule and meeting timelines.  The project is on track to meet its deadline of having the mine fully commissioned by April 2018 and of achieving full production by the third quarter of 2023, says Mothomogolo.

Contact Details for Project Information
Wesizwe Platinum, Hamlet Morule, tel +27 11 994 4600, fax +27 11 944 4601 or email hamlet@wesizwe.com.
Scribante Construction, tel +27 11 466 9232, fax +27 11 466 9233 or email office@scribanteconstruction.co.za.
TWP Projects, tel +27 11 218 3000, fax +27 11 218 3100 or email twpinfo@twp.co.za; or MD Digby Glover, email dglover@twp.co.za.
Aveng Grinaker-LTA, +27 11 578 6000 or fax +27 11 578 6161.