Name of the Project
Bakubung Platinum Mine (BPM) project.

Location
The BPM 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.

Client
JSE-listed Wesizwe Platinum.

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

The mine will comprise an underground mine with a twin vertical shaft system – a production shaft and a services shaft, which will also function as the second escape route – and a process plant.

An optimisation study completed on the project in 2014 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 included:
• semimechanising all development;
• 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 to transport ore and mineworkers respectively;
• using three 6.1 m raisebore shaft to further assist with ventilation distribution;
• 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.

The mining method will be a combination of conventional and mechanised methods. The Merensky and UG2 reefs will be mined using conventional stoping, with a mechanised mining method used to access the two reef horizons.

Jobs to Be Created
Once the mine has reached full production, it is expected to employ about 3 242 employees.

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 main commissioning of the mine is scheduled for the fourth quarter of 2018, with full production expected by mid-2022.

Latest Developments
Wesizwe Platinum and Aveng entered into an engineering and construction contract in September 2012 for the development of BPM. In 2012, Aveng Mining was awarded the shaft-sinking contract for the mine; the scope of works included sinking, lining and equipping of the main and ventilation shafts and related development, and equipping of the stations and levels for the client.

Owing to commercial imperatives, Wesizwe has decided to reduce the scope of the works, which has brought the completion date of the contract forward to December 2016.

The implications and effect of signing the addendum include that Aveng will be compensated on a revised payment agreement, enabling the parties to jointly optimise the costing on the project. Following an amicable agreement, both parties have agreed to suspend their respective rights and entitlement associated with currently lodged adjudication and arbitration proceedings. Aveng remains liable and committed to complete the contracted works on the revised scope, timeline and conditions.

The completion of Phase 1 commissioning in June will be followed by Phase 2, a multibillion-rand flat development scope, which entails the planned capital footprint development. This is linked to production build-up to steady state in mid-2022.

Key Contracts and Suppliers
WorleyParsons (feasibility study and current engineering, procurement and construction management contract); Eskom (power supply); LT Services (surface road infrastructure); Aveng (main shaft equipping); EBJ Mining Construction (development and construction labour) Kamano group (TMM maintenance); etc.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Wesizwe Platinum manager: corporate communications Thandiwe Mapi, tel +27 11 994 4600, fax +27 11 944 4601 or email thandiwe.mapi@wesizwe.com.