Barplats Mines, a subsidiary of TSX- and JSE-listed platinum group metals (PGMs) miner Eastern Platinum (Eastplats), has entered into a project framework agreement with Advanced Beneficiation Technologies of South Africa (ABT) to complete an independent feasibility study for a tailings retreatment plant.
The independent feasibility study is for the development and construction of a new modular plant with the capacity to process the PGMs of the tailings redeposited at a designated area of the Zandfontein tailings dam, which is situated at the Crocodile River mine in South Africa.
The plant is expected to operate at a rate of between 20 000 t and 50 000 t a month, with the final rate being dependent on the outcome of the feasibility study.
The project needs to pass several milestones, including the completion, at ABT’s risk and cost, assessment and acceptance of the feasibility study, which is expected in November.
This will be followed by the conclusion of various agreements, including a joint venture agreement between Barplats and ABT, as well as the sourcing of funding.
Barplats will supply the material and related infrastructure for PGMs processing from the Zandfontein tailings dam, establish an appropriate offtake agreement and support the project through both executive management and administration.
ABT, as the intended operator, is responsible for completing the feasibility study including drilling, securing funding, overseeing the construction and commissioning and operating the project as governed by the project agreement.
Eastplats CEO Diana Hu says this venture is a new potential revenue source for the company without any additional capital funding obligations.
Meanwhile, Eastplats also notes that the effects and impact of the Covid-19 pandemic are constantly changing, which could result in potentially material adverse effects on the company’s business, liquidity and cash flows.