JSE-listed Eastern Platinum (Eastplats) has executed updated retreatment project agreements, building on original agreements signed between its subsidiary Barplats Mines and Union Goal Offshore Solution in 2018.
The updated retreatment project agreements include a revised framework agreement, offtake agreement, loan agreement and equipment and plant agreement.
Operations at Barplat’s Crocodile River mine, in the Bushveld Complex of South Africa, include remining and processing its tailings resource, with an offtake of the chrome concentrate to Union Goal from the Barplats Zandfontein upper group two tailings facility – the retreatment project – and the processing and extraction of platinum group metals (PGMs).
The company earlier in March reported a review of the retreatment project operations for 2019 and 2020.
The updated retreatment project agreements capitalise on two years of operating knowledge and Eastplats’ continued commitment to the long-term benefits of the project.
Eastplats and Barplats maintain the put option and Union Goal retains the call option for the repurchase of the retreatment project equipment and loan, in the event that both parties cannot agree on the pricing for the entire circuit once assessment is complete.
The updated agreement states a rate charged on each ton re-mined of R43.17/t for 2021, accounting for South Africa consumer price index adjustments.
Barplats has been afforded an extension of the due date of its construction loan and equipment payment to 210 days following the commissioning of the optimised equipment and circuits, which are currently delayed owing to Covid-19.
Eastplats CEO Diana Hu says the retreatment project and the magnetic separation flotation technology used have transformed Eastplats from a company with potential but no operating or cash flows into a resource company generating revenue and mining operation income from chrome concentrate and its PGM operations and with multiple project opportunities for this year and beyond.