JOHANNESBURG (miningweekly.com) – Emerging miner Wesizwe Platinum concluded an amicable agreement with appointed shaft sinking contractor Aveng Mining for an early termination at its Bakubung platinum mine, in Rustenburg.

The agreed handover will be concluded by May 2017, when Phase 1 main shaft commissioning, which was initially to be concluded by September, will be completed.

The completion date for the shaft-sinking contract with Aveng, which was inked in 2012, was brought forward after the scope of works was reduced, the company said in a statement on Friday.

Aveng, which had been tasked with sinking, lining and equipping the main and ventilation shafts, and related development, and the equipping of the stations and levels, will be compensated on a revised payment agreement.

“Following an amicable agreement, both parties have agreed to suspend their respective rights and entitlement associated with currently lodged adjudication and arbitration proceedings. Aveng remains liable and committed to completing the contracted works on the revised scope, timeline and conditions,” Wesizwe said in an update.

The move is not expected to have any adverse impact on Wesizwe’s operations.

Meanwhile, all the pipework of the critical project phase has been installed to surface and the Phase 1 headgear changeover to permanent functionality completed.

Steel work is currently under way, with 41 sets installed 280 m below sub-bank. The installation is planned for completion by February 2017.

During the six months to June 30, 9 900 m of pipes had been installed.

Further, Wesizwe noted that the flat development through the services shaft was well under way, with full reef development expected to start in the second quarter of 2017.

In addition, the feasibility studies and inquiry process for the process plant have also been completed and procurement is planned to start in 2017.

“The bulk sampling programme was completed in June. The testwork indicated an opportunity to reduce capital and operational costs. These opportunities will be adopted into the process design criteria,” the platinum junior said.

Meanwhile, the Phase 2 power supply programme with Eskom is on track for a November commissioning, while the mine’s water programme for permanent supply was well under way with completion of the 50 Ml reservoir scheduled for October.

Wesizwe reported a loss of R600 000 for the six months to June 30. The basic loss a share for the period was 0.04c a share, with headline earnings a share coming in at 10.36c apiece.

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