Despite falling slightly behind schedule with the development of its flagship Bakubung project, JSE-listed Wesizwe Platinum remained confident that the mine remained on schedule to start production ramp-up in early 2018.

The company, which last week released its financial results for the six months ended June 30, said the project was 14% complete, relative to a planned completion of 15%.

“This slight shortfall in completion relates to the shaft sinking rate, which is behind schedule. This situation has been addressed and positive results are currently being seen,” the miner noted.

The delay was largely attributed to a “less than satisfactory” main sink rate on the oper- ation’s ventilation shaft, which was affected by delays in the first-phase power delivery by parastatal Eskom, a delay in the commis-sioning of the kibble winder and a lack of sinking readiness on the part of the sinking contractor, Wesizwe stated.

“Certain negative geological factors also con- tributed to the delay in achieving the target main sink rate. The factors contributing to a slower-than-expected sink rate have been addressed aggressively, with positive results currently being demonstrated,” the company noted.

By the end of June, the ventilation shaft depth from collar was 206 m.

Despite delays on the ventilation shaft, the sinking of the main shaft continued on schedule over the period, which saw the suc-cessful conversion from presink to slow sinking on the 8.5-m-diameter shaft.

The main shaft headgear, winder house and winders were commissioned during the six months under review, while slow sink was started on July 9 at a depth of 120 m below collar, some two weeks ahead of schedule.

All shaft bank steelwork and services were simultaneously commissioned, with the four-gate ventilation system extended to the face to provide sufficient ventilation for operations.

Meanwhile, the platinum-group metals miner said it had “substantially reviewed” the original processing plant feasibility study following the conclusion of definitive metal-lurgical testwork by Mintek.

A process option analysis, in May, recom-mended the process option be finalised to a definitive feasibility (DFS) study level, which was, in combination with a mill sizing modelling study, currently being undertaken.

“The DFS will be concluded by March 2014, after which we will start to order long lead items and begin construction of the plant,” the company said.

Following the delivery of the Phase 1 permanent power supply of 8 MVA to the project site by Eskom, Wesizwe said it expected the Phase 2 power supply requirement of 60 MVA to be provided by the planned 500 MVA Ngwedi substation.

The miner noted that the power utility had confirmed the national importance of the substation and that Wesizwe had been fully advised of the project plan and delivery time of the substation.

“Regular project progress meetings are held between Wesizwe and Eskom, inclusive of two other neighbouring mines under development. We are confident that power delivery will not be a limiting factor to the commissioning of operations going forward,” the company commented.

Power reticulation to all winders on site was also completed in the period under review, inclusive of an additional 12 MVA supply from the power utility.

In terms of the mine’s water requirements, Wesizwe had successfully signed off a long-term bulk water supply agreement with utility Magalies Water on June 19, which would see the implementation of a number of collabor-ative projects by the two parties to upgrade existing water infrastructure and ensure the delivery of the required volume of water to Bakubung.

Wesizwe was also currently in advanced discussions with its neighbouring mines on possible key synergistic projects involving the metallurgical processing of ore, power and water infrastructure and housing initiatives.

Project Funding

Following the approval of a $650-million loan facility by the China Development Bank in January, Wesizwe said it planned to finalise all terms and conditions of the facility by the end of the financial year and, at the end of the reporting period, had R2-billion in cash available for the development of the Bakubung project.

The miner had, up to June 30, spent R1.11-billion in capital expenditure on the project, with commitments of R1.3-billion remaining.