Major Platinum Reserves From Bakubung Mine To Be Exported To China

JOHANNESBURG (Scrap Monster) : According the Johannesburg-based Weizwe Platinum which expects to start its mine production from 2018, the major part of platinum production from its new Bakubung Platinum Mine (BPM) is likely to be exported to China. While addressing the media during the release of the 2013 annual report of the company on Wednesday, the Chairperson of Wesizwe, Dawn Mokhobo said that the platinum market is predicted to witness a supply crunch by the time the new mine of the company starts its production.

The new R 10.7 billion mine of Wesizwe Platinum is expected to start its operation within four years of time. While commenting on the shipment of platinum reserves from the BPM located at the south of the Pilanesberg nature reserve, Mokhodo told the media that the recent estimates show that the existing supply of platinum may fall below the expected level by the time when the new mine starts it production. Most of the reserves of BPM will be funneled to benefit the automobile industry of China as it is seen to grow tremendously in the world market as add ups to competitively priced motor vehicles.

The funding for the new mine of Wesizwe Platinum is accomplished by the Chinese investment giant, the Jinchuan Investment Consortium which holds 45 % of the company’s share. They have arranged funding of a $ 650 million loan for the launch of the Bakubung Platinum Mine. The company had cashed R 865 million in December and initiated its first draw-down of $ 100 million on the $ 650 million loan in January.

The company has announced to spend R 1.7 billion for the mine in 2014 and estimates an amount of around $ 350 million more required for the completion of the project. They are predicting an increased output of 20 % for their new project, expected to reach at 420,000 ounce of platinum group metals per year at a steady phase of production. Company targets to obtain platinum extracts from the Merensky Reef.