South Africa's Industrial Development Corporation (IDC) is to invest around 840 million rand (£75.1 million) in equity finance for the new Lesego platinum mine project, it has been reported.

"The total capital outlay is estimated to be approximately six billion rand [£536.5 million] and assuming a 50:50 debt to equity split, the IDC equity contribution will be approximately 840 million rand," IDC chief executive Geoffrey Qhena told Reuters.

He explained that the state-owned organisation has acquired a 28 per cent stake in the Limpopo-based project, which is owned by junior miner Village Main Reef.

It recently released drilling results that revealed Merensky Reef at a depth of just 590m below surface at the platinum project.

Chief executive officer of Village, Bernard Swanepoel, said: "Discovering Merensky and UG2 at these shallower depths is a game changer and enhances the potential value of this project significantly."

South Africa may increase its platinum output by five per cent in 2011 from 4.64 million ounces last year, Reuters noted.

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S.Africa IDC to help fund $860 mln platinum mine (17/05/11)

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