Northam Platinum said on Thursday it would start construction on a big new platinum mine by early 2010, and the first phase would cost about R3-billion.
Northam Platinum — a unit of black-owned Mvelaphanda Resources — owns the deepest platinum mine in the world and is betting that the development of the vast new Booysendal mine will expand its production options.
The company said in a statement that it had completed a feasibility study for Booysendal, which could more than double Northam Platinum’s output, pushing it to rank fourth after the world’s third-biggest platinum producer, Lonmin.
”Our intention remains to fund the project through a combination of a rights issue, internal retentions [own cash] and medium-term bank debt,” said Glyn Lewis, the company’s chief executive.
”Booysendal is living up to our expectations and is likely to be a significant, long-life producer, and one of the new-generation PGM [platinum group metals] mining projects of the future.”
Northam Platinum’s production of metals in concentrate during the year to end June rose by 3% to 302 474 ounces.
The first phase of the project’s life-of-mine is expected to exceed 20 years, during which period further production expansions would be developed, he said.
Lewis said Eskom has undertaken a feasibility study for a new substation to be situated on the Booysendal property.
Northam Platinum is the only fully independent black-owned platinum group metal producer listed on the JSE. — Reuters