Pan African Resources will commence construction of its new tailings retreatment plant in June, it was confirmed yesterday (8th April).

The company revealed that the first production from the Phoenix Chromite Tailings Retreatment Plant (CTRP) will be achieved in the second half of 2011.

Pan African has settled on a site for the facility with International Ferro Metals (IFM) to build the plant on the latter's property and is now exploring infrastructure requirements.

According to reports, Pan African is planning for the plant to produce about 15,000 oz pgm per year following the completion of the commissioning process, with a life expectancy of about 17 years.

A formal agreement between the two parties will only be finalised once a detailed engineering design of the plant has been finished, with Pan African's first R25 million payment then being enforced.

As part of the deal, Phoenix Platinum could acquire a 25 per cent net profit interest currently held by IFM in the pgm tailing fraction at Lesedi, which will be treated at the CTRP plant.

Pan African is predominantly a gold producer, but it signalled its intentions to move into near-term platinum production by securing an option to acquire 100 per cent of Phoenix in May 2009.

Source:

Pan African to start construction of tailings retreatment plant in June (08/04/10)

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