World number one platinum miner Anglo Platinum and London and Australian-listed Aquarius Platinum have entered into an agreement to jointly mine the adjacent Rustenburg and Kroondal properties, the companies announced on Monday. The movie is projected to create about 1100 new job opportunities.
The agreement provides for the parties to pool their assets, while retaining ownership thereof and to share the proceeds equally.
AngloPlat will provide access to a portion of the UG2 ore body on the Rustenburg Platinum Mines lease area and Aquarius Platinum will provide access to its existing Kroondal Platinum Mine lease area and infrastructure.
The venture is subject to certain conditions including statutory and regulatory consents and approvals, which are expected to be fulfilled in the near future.
The parties intend to utilise the existing KPM infrastructure to gain access to the RPM ore body down-dip of KPM.
Output at KPM will be expanded from about 140 000oz of platinum per annum to about 280 000oz during 2006.
This will be achieved by utilising the existing KPM infrastructure, constructing an additional 250 000 ton per month concentrator for completion in 2005 and the establishment of additional decline shaft capacity at RPM.
The venture will have mineable reserves and resources of 69-million tons (57-million RPM, 12-million KPM) and will have a mine life extending to 2016.
The capital required for the establishment of the venture is under review and is expected to be in the order of R750-million in 2003 money terms and will be equally funded by AngloPlat and Aquarius Platinum.
Construction will begin as soon as possible and the commencement date of the venture will be November 1 2003.
AngloPlat’s share of the venture’s capital cost and production is included in its expansion program to produce at a rate of 3,5-million ounces of platinum by 2006. – I-Net Bridge