Wesizwe resumes construction activities at Bakubung, but funding shortage a challenge
Although construction resumed at Wesizwe's Bakubung mine in mid-February, the mine is now behind its construction schedule.
Wesizwe on February 8 informed shareholders that community protests had interrupted the development of its Bakubung mine and that construction of the mine had been halted for the safety of employees.
Wesizwe says that although an agreement has not yet been reached with the community, Bakubung Platinum Mine is engaging with the community to find a solution and that construction has, therefore, resumed.
However, the company did not complete the construction of the Phase 1 concentrate processing plant during December 2021 as planned. Some of the underground construction projects have also been delayed.
As Bakubung Platinum Mine has not achieved operational status, it therefore has no operating income while still being contractually obliged to repay the principal and interest of its loan as it comes due and thus needs additional funds.
"The impact of the Covid-19 pandemic, community protests and funding shortage has aggravated the mine’s already delayed project construction schedule.
"Management is reviewing the new construction schedule and will communicate it in the Integrated Annual Report 2022. Wesizwe management is doing its best to overcome difficulties to ensure that construction progresses and to solve the shortfall funding issue," the company reports.
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