Name and Location
Bakubung platinum group metals (PGMs) mine project, North West, 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, 7.5 m in 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 the project’s shareholder value.

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. When the Merensky reef is depleted, between 10 and 15 years after 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 has reported that the main and ventilation shafts at the Bakubung platinum mine have been fully commissioned and licensed, and are in the main sink phase.

The main shaft achieved a depth of 345 m and the ventilation shaft a depth of 506 m by the end of the year ended December 31, 2013.

The company has also completed its optimisation project, which was initiated at the start of 2013, with the findings approved for implementation.

The optimisation focuses on a much-improved mine design, a shortened production ramp-up time and a reduction in nominal capital expenditure.

The results of the optimisation have delivered a significant improvement in the project valuation. The project net present value has increased to R6.5-billion, from R4.4-billion in the 2009 bankable feasibility study.

Also included in the optimisation is a 20% increase in yearly production to 420 000 oz/y of PGMs at a steady state.

Further, Wesizwe’s definitive metallurgical feasibility study is well under way and is expected to be concluded during the first half of this year.

The company’s services projects are also on track and progressing well.

The Eskom Phase 1 power supply of 20 MVA has been commissioned and will be sufficient for the full underground development of Bakubung, and a bulk water supply agreement has been signed off with Magalies Water.

Meanwhile, the company has also concluded and signed all project financing agreements for the first $650-million loan facility from the China Development Bank, with the first drawdown of $100-million having occurred in January this year.

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?
The development of Bakubung is currently on schedule and within budget, with first production scheduled for the first quarter of 2018.

Contact Details for Project Information
Wesizwe Platinum executive: corporate affairs and investor relations 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.