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

Location
The BPM project is located on the western limb of the Bushveld Igneous Complex, north of the City of Rustenburg, adjacent to the well-known Sun City Complex, in the North West, South Africa.

Project Owner/s
Wesizwe Platinum.

Project Description
The project entails the construction of a platinum group metals (PGMs) 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 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 increased production rates;
• the substantial use of conveyor belts and chairlifts to transport ore and mineworkers respectively;
• using three 6.1 m raisebore shafts to further assist with ventilation distribution;
• increasing hoisting capacity to support increased production rates;
• moving 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.

A combination of conventional and mechanised methods will be employed.
The Merensky and upper group two reefs will be mined using conventional stoping, with mechanised mining used in all the development to access the two reef horizons.

The concentrator design, emanating from the results of the testwork conducted during the bankable feasibility study, is based on a standard PGMs plant layout.

Options for collaboration in developing synergies with neighbouring mines are continually being investigated to exploit benefits from economies of scale and sharing capital infrastructure costs. BPM will have a 35-year life-of-mine.

Potential Job Creation
Once the mine has reached full production, it is expected to have an estimated 3 190 employees.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
According to the optimisation study, the control budget estimate of nominal capital expenditure decreased from R12.03-billion to R10.69-billion, primarily as a result of the significantly improved ramp-up timeframe to full production.

Planned Start/End Date
Full production is expected by mid-2022.

Latest Developments
As a consequence of Covid-19 and its associated impacts on the process plant construction schedule, Wesizwe Platinum’s Bakubung platinum mine development has been delayed, with the hot commissioning date now set for October 2021.

Additionally, delays in public consultations required for the company’s integrated water-use licence application and environmental-impact assessment have led to the start of tailings and stockpad commissioning being delayed to June and March next year respectively.

Wesizwe could progress only 1.1 km of development for the six months to June 30, against a proposed target of 3.6 km for the year.

During the six months under review, Wesizwe spent R1.4-billion on construction works.

The mine’s operating unit cost per metre and per tonne ended up being 251% and 216% higher respectively in the six months under review, owing to lower efficiencies in production and the overhead costs remaining flat. Some additional Covid-19 compliance costs also added to the variance.

Wesizwe completed a revision of the mine’s definitive feasibility study based on the latest business case, which was approved by the technical committee and board in September.

The company advised in its results statement that its cash resources of R1.7-billion are sufficient to conduct operations and develop the Bakubung mine up to the end of the year.

However, the ability of the company to continue as a going concern depends on a number of factors, including the support of the majority shareholder.

The company says its majority shareholder has provided a letter of comfort, supporting any shortfall in funding and guaranteed repayment of the China Development Bank loan.

Key Contracts and Suppliers
Eskom (power supply), LT Services (surface road infrastructure), EBJ Mining Construction (development and construction labour), Kamano group (trackless mine machinery maintenance), NHI (conveyor structure), Howden (ventilation fans) and Louwill (shaft equipping).

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.morule@wesizwe.com.