[miningmx.com] – IVANHOE MINES would use $61m of some $412m received from China’s Zijin Mining Group for the continued development of the Platreef project in South Africa’s platinum belt.
All in all, Ivanhoe now has available cash of some $530m which includes the proceeds paid to the Canadian firm by the Chinese which took a 49.5% stake in Kamoa, a copper project sited in the Democratic Republic of Congo.
Zijin paid an initial $206m tranche with the balance of the fee to be received in five equal installments every three-and-a-half months from December 8. Part of the proceeds would also be invested in Ivanhoe’s other tier one assets, including Kamoa.
According to a preliminary economic assessment of the Platreef project, it is estimated it would mine eight million tonnes a year producing 785,000 ounces of platinum, palladium, rhodium and gold a year.
