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 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.

An optimisation study has increased mine capacity by 8.7% to 250 000 t/m of run-of-mine ore at full capacity.

The key results of the optimisation study include:
• semimechanising all mining;
• shortening the shafts through the removal of underground crushing, and bringing level development close to reef horizons (on-reef development), which will result in a substantial reduction in off-reef development and an increase in hoisting capacity to support the increased production rates;
• the substantial use of conveyor belts and chairlifts transport ore and mineworkers respectively;
• using a third 6 m raise-bore shaft to further assist with ventilation and logistics (men and material) and to allow for the second alternate exit;
• increasing hoisting capacity to support the increased production rates;
• removing underground infrastructure to surface, including primary crushing; and
• revising the shaft pillar strategy, which will be mined at the end of the mine’s life.

Net Present Value/Internal Rate of Return
Not stated.

Value
According to the optimisation study, the control budget estimate of nominal capital expenditure is expected to decrease from R12.03-billion to R10.69-billion, primarily as a result of the significantly improved ramp-up timeframe to full production. Real capital cost has resulted in a 9% increase, largely owing to the cost of capital equipment designed to reduce operating costs over the life-of-mine, including conveyor belts and chairlifts.

Duration
The initial 230 000 t/m production level is now planned for October 2020, as opposed to December 2022.

Latest Developments
Wesizwe remains within its targeted concentrate production output and project construction costs budget for its flagship Bakubung project.

Reporting on its 2015 financial year performance in March, the Chinese-backed company said that, during the year to December, the main and ventilation shafts had been completed as scheduled at 825 m and 810 m respectively.

Further, services projects on site were on schedule, with an additional 20 MWac secured for the Phase 1 power supply for the commissioning of the shafts and 1.5-million-litre-a-day capacity had been commissioned for permanent water supply to the mine.

With several milestones achieved during the 12 months under review, Wesizwe has started the process of enquiry for the engineering, procurement and construction management and front-end engineering for the process plant.

“The updated feasibility study of the Bakubung project was tested by the auditors for an impairment assessment and still continues to yield very encouraging results,” the company adds.

The plant is expected to be commissioned in the third quarter of 2019.

Key Contracts and Suppliers
WorleyParsons (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 Bakubung mine will reach full production late in 2020 – two-and-a-half years ahead of schedule – with an initial 230 000 t/m production rate planned for October 2020.

The cost of the project has decreased from R12.03-billion to R10.69-billion.

Contact Details for Project Information
Wesizwe Platinum manager: corporate communications Thandiwe Mapi, tel +27 11 994 4614, fax +27 11 944 4601 or email thandiwe.mapi@wesizwe.com.
Scribante Construction, tel +27 11 466 9232, fax +27 11 466 9233 or email office@scribanteconstruction.co.za.
WorleyParsons, tel +27 11 218 3000 or fax +27 11 218 3100.
Aveng Grinaker-LTA, +27 11 578 6000 or fax +27 11 578 6161.