Eastplats considers expansion options

[miningmx.com] — EASTERN Platinum (Eastplats) is looking to resume expansion plans for its projects on the Eastern Limb of the Bushveld Complex but has given no details on timing.

CEO Ian Rozier said in a statement released on the JSE’s stock exchange news service (SENS) on Thursday that, “Eastplats plans to take a phased approach to development of its Eastern Limb projects.

“This will mitigate the risks associated with multiple new mines and a new processing facility being under construction at the same time and optimising capital requirements.

“Should market conditions permit the company has the flexibility to immediately initiate the proposed production build-up at the Spitzkop, Mareesburg, De Goedegevagting (DGV) and Kennedy’s Vale underground mines after the construction of the Kennedy’s Vale concentrator is complete. “

Rozier added an increase in annual production to 325,000oz/year of platinum group metals (pgm) would be achieved by developing the Mareesburg open pit mine and building a 90,000t/month concentrator plant at Kennedy’s Vale.

The capital cost of this first phase development is estimated at $227m (about R1.7bn) and it will produce about 115,000oz/year of pgm.

Eastplats currently produces about 130,000oz of pgm annually from its Crocodile River mine near Brits which is currently being expanded to reach a target of 210,000oz/year by the end of 2013.

According to Rozier the phase one open pit mine will have a life of five years during which the Spitzkop mine will be developed.

He said, “a number of financing options for phase one are currently being considered and the company expects to provide an update in the second half of 2010.

“Financing options for phases two, three and four will be dependent on the prevailing market conditions, future meal prices, foreign exchange rates and the revenues generated from the Crocodile River Mine and phase one operations.’