Name and Location
Bakubung platinum group metals (PGMs) mine project, North West, South Africa.

Client
JSE-listed Wesizwe Platinum.

Project Description
The Bakubung platinum mine project, formerly known as the Frischgewaagd-Ledig project, is located in the western limb of the Bushveld Igneous Complex, north of the City of Rustenburg, in the North West.

The project entails the construction of a PGM mine on Wesizwe Platinum's core assets.

The project will consist of an underground mine and takes into account the establishment of all surface infrastructure, servitudes for bulk power and water supply, the sinking and equipping of ventilation and main shafts, the associated underground infrastructure, the ancillary excavations and access development to establish a footprint for full production.

The mine is specifically designed for optimum flexibility in terms of mining method (conventional, mechanised or hybrid) and allows for fast production build-up to enhance the project’s shareholder value.

An optimisation study has increased mine capacity by 8.7% to 255 000 t/m of run-of-mine ore at full capacity.

The key results of the optimisation study include:
• all mining be semimechanised;
• the shortening of shafts through the removal of underground crushing, and bringing level development close to reef horizons (on-reef development), which will result in a substantial reduction in off-reef development and an increase in hoisting capacity to support the increased production rates;
• the substantial use of conveyor belts for the transport of ore and chairlifts for the transport of mineworkers;
• the inclusion of a third 6 m raise-bore shaft to further assist with ventilation and logistics (men and material) and allow for the second alternate exit (there are two alternate exits);
• the increase in hoisting capacity to support the increased production rates;
• the removal of underground infrastructure to surface, including primary crushing; and
• the revision of the shaft pillar strategy (to be mined at end of mine life).

Value
According to the optimisation study, the control budget estimate of nominal capital expenditure is expected to decrease from R12.03-billion to R10.69-billion, primarily as a result of the significantly improved ramp-up timeframe to full production. Real capital cost has resulted in a 9% increase, largely owing to the cost of capital equipment designed to reduce operating costs over the life-of-mine, including conveyor belts and chairlifts.

Duration
The initial 230 000 t/m production level is now planned for October 2020, as opposed to December 2022.

Latest Developments
Wesizwe has made good progress on the development of its main shaft and has forecast the completion date for the 920 m shaft in November 2015, which is 55 days ahead of the initially expected completion date in January 2016.

Similarly, the ventilation shaft is expected to reach its final depth of 880 m in September 2015, which is 144 days ahead of schedule.

The focus of project development work at Bakubung until the end of the year will be on improving shaft-sinking rates, quality blasting of station breakaways, developing production levels and advancing further optimisation work on ventilation and compressors.

Key Contracts and Suppliers
WorleyParsons (feasibility study and current engineering, procurement and construction management contract); Scribante Construction (earthworks and civil work Phase 1); Benco Engineering (blasting); Blast Management & Consulting (blast monitoring); Eskom (power supply); Liviero (civil earthworks and concrete) and Aveng Grinaker-LTA Mining (shaft-sinking contract).

On Budget and on Time?
An optimisation study has reduced the time to full production by 26 months.
The cost of the project has been reduced from R12.03-billion to R10.69-billion.

Contact Details for Project Information
Wesizwe Platinum executive: corporate affairs and investor relations Hamlet Morule, tel +27 11 994 4600, fax +27 11 944 4601 or email hamlet@wesizwe.com.
Scribante Construction, tel +27 11 466 9232, fax +27 11 466 9233 or email office@scribanteconstruction.co.za.
WorleyParsons, tel +27 11 218 3000 or fax +27 11 218 3100.
Aveng Grinaker-LTA, +27 11 578 6000 or fax +27 11 578 6161.