EASTERN Platinum (Eastplats) said it had secured an agreement with Union Gold Offshore Solution, a US company, that is to build facilities enabling Eastplats to retrieve chrome from tailings at its mothballed Crocodile River mine in South Africa.
In terms of the agreement, Union Gold Offshore Solutions will pay Eastplats’ subsidiary, Barplats, R42.2m in order to construct, mine, and process chrome-bearing tailings at the Barplats Zandfontein UG2 facility. First production will be after commissioning which is set down for the third quarter of this year.
Commenting on August 15 following its second quarter results announcement, in which it booked a net loss of $4.2m for the period, Eastplats said all significant items for the chrome circuit were on-site whlle the tailings facility and dam construction were progressing satisfactorily.
The company said it had cash and short-term investments of $18.4m and working capital of $18.5m as of June 30 – enough to complete the re-treatment project. However, all other initiatives and projects had been put on hold, it said.
