Zimbabwean company Great Dyke Investments is close to finalising financing for its Darwendale platinum group metals (PGMs) project, in Zimbabwe, and plans to start construction on the project in the first quarter of next year.

Phase 1 of the project, which will cost about $500-million to develop, will produce about 280 000 oz/y of PGMs and gold.

A two-stage expansion plan will later increase production to about 860 000 oz/y of PGMs and gold.

“There remains a lot of hard work to be done before we can commence development on the ground, but I am confident that the Darwendale project has the potential to become a significant low-cost PGMs producer, ultimately becoming a major part of the global PGMs industry in the mid-term,” says Great Dyke chairperson David Brown.

Advanced negotiations are under way with a number of South African, Russian and Zimbabwean financial institutions to participate in the syndicate providing funds for equipment, machinery and services procurement.

The main financial partner of the project is the African Export-Import Bank, which had been acting as a mandated lead arranger for the project, which is considered to be one of the world’s largest untapped PGM deposits, since early in 2018.

Great Dyke is the project implementer, while the project will be controlled on a parity basis between Russian and Zimbabwean shareholders – Afromet JSC and Landela Mining Venture, respectively.

In turn, Russian investment and industrial group Vi Holding is the ultimate beneficiary through a 100% stake in Afromet JSC. Vi has been the promoter and key investor in the project since 2013.

The Darwendale project has a resource of 181-million tonnes of ore containing 17.1-million ounces of PGMs and gold, at an average grade of 2.93 g/t.

A bankable feasibility study, undertaken by engineering house DRA Group, confirmed that about 1 350 jobs would be created with development of Phase 1 of the project.

The project implementation strategy provides for the phased development of mining, processing and smelting operations.