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 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 will 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 had made good progress on the development of its main shaft, and has forecast the completion date for the 970 m shaft – October 15, 2015 – to be 85 days ahead of the initially expected completion date in January the following year.

Similarly, the ventilation shaft is expected to reach its final depth of 880 m in November 2016 – 72 days ahead of schedule.

The focus of project development work at Bakubung until the end of the year will be on improving shaft-sinking rates, creating station breakaways, developing stations and levels, and advancing further optimisation work on ventilation and compressors.

Earlier this year the prospective miner commissioned an optimisation study at Bakubung to investigate ways of bolstering the project’s business case by incorporating recent changes in the platinum business environment.

Factors that were considered in the study to develop an improvement plan included lower metal processes, increasing cost pressures – particularly increases in electricity and labour – the social climate, the need for improved working conditions, the investment climate and the need to reduce overall business risk.

The plan has been approved for implementation and has resulted in cost savings of about R2.2-billion.

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’s main shaft and ventilation shaft are currently ahead of schedule, by 85 and 72 days respectively.

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.