Name of the Project
Bakubung Platinum Mine project.

Location
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.

Client
JSE-listed Wesizwe Platinum.

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

The mine will comprise an underground mine with a twin vertical shaft system – a production shaft and a services shaft, which will also function as the second escape route – and a process plant.

An optimisation study completed on the project in 2014 increased mine capacity by 8.7% to 250 000 t/m of run-of-mine ore at full capacity.

The key results of the optimisation study included:

• Semi mechanising all mining;
• shortening the 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 and chairlifts to transport ore and mineworkers respectively;
• using a third 6 m raise-bore shaft to further assist with ventilation and logistics (men and material) and to allow for the second alternate exit;
• increasing hoisting capacity to support the increased production rates;
• removing underground infrastructure to surface, including primary crushing; and
• revising the shaft pillar strategy, which will be mined at the end of the mine’s life.

The mining method will be a combination of conventional and mechanised methods. The Merensky and UG2 reefs will be mined using conventional stoping, with mechanised mining method used in all the development to access the two reef horizons. The concentrator design has emanated from the results of the testwork conducted during the bankable feasibility study and is based on a standard PGM plant layout. Options for collaboration in developing a joint concentrator plant with neighbours Maseve are being investigated to exploit benefits from economies of scale and sharing capital infrastructure costs.

Bakubung will have a life-of-mine of 35 years.

Jobs to be Created
Once the mine has reached full production, it is expected to employ about 3 242 people.

Net Present Value/Internal Rate of Return
Not stated.

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 main commissioning of the mine is scheduled for the fourth quarter of 2018, with full production expected by 2021.

Latest Developments
Wesizwe has decided to appoint contract miners to operate its Bakubung platinum mine for the first five years of its mine life. Thereafter, it will review whether it should continue with contract mining for another five years or switch to owner-operated mining.

Wesizwe projects executive Jacob Mothomogolo has explained that 70% of South Africa’s start-up PGMs mines have implemented contract mining for the first five years of mine life, after which the mine became owner-operated.

A project is sensitive to delays during the early years of production and contract mining tends to yield a better performance during that time, he further notes.

The company is setting up a scoping document and, following commissioning, will “strategically appoint” two mining contractors.

Corporate affairs executive Hamlet Morule has said that the mine will be divided into two.

Wesizwe is on track to commission the first phase of the Bakubung main shaft and hoist its first ore in 2017.

It will also start process plant construction and complete all surface infrastructure and installations next year.

It expects to reach a production rate of 230 000 t/m by 2020.

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?
The Bakubung mine will reach full production late in 2021 – two years ahead of schedule – with an initial 230 000 t/m production rate planned for October 2020.

The cost of the project has decreased from R12.03-billion to R10.69-billion.

Contact Details for Project Information
Wesizwe Platinum manager: corporate communications Thandiwe Mapi, tel +27 11 994 4600, fax +27 11 944 4601 or email thandiwe.mapi@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.