Wesizwe Platinum's flagship Frischgewaagd-Ledig mine is on course to start production by 2017, the company has said.

The mine, which will produce 350,000 oz/y of platinum group metals (pgms) by 2021, is being finished thanks to a deal between the miner and a consortium consisting of Jinchuan and the China Africa Development Fund, which will take a 45 per cent stake.

Joint acting chief executive officer Arthur Mashiatshidi explained that the consortium will fund any capital shortfall until the completion stage of the project without increasing its equity stake, Mining Weekly reports.

"As far as I know, no other funding structure like this has been done in South Africa before, especially not for a single-project company," he said.

Mr Mashiatshidi suggested that Wesizwe would look at mergers and acquisitions opportunities to consolidate the firm's position.

Wesizwe is also in the early stages of talks with Canada's Platinum Group Metals on the possibility of building a concentrator together.

"We are investigating possibilities of jointly developing bulk water infrastructure, accommodation, a concentrator plant and even skilled labour," Mr Mashiatshidi added.

According to projects executive Jacob Mothomogolo, the two companies are looking to establish a 40,000 t/m concentrator.

It is thought they will use an existing joint venture - Maseve Investments - to facilitate this. Wesizwe has 26 per cent stake in Maseve, with the Canadian firm owning the remainder.

By building a single, large concentrator instead of two separate ones, the neighbouring companies believe they can save between ten and 15 per cent from the total cost.

"Over a life of 30 years that will give a big saving," Mr Mothomogolo told South African publication Business Day.

Sources:

Wesizwe fully funded to develop Frischgewaagd-Ledig mine (14/07/11)

Wesizwe, PTM look at joint concentrator (15/07/11)

Wesizwe Platinum Says It Sees Consolidation Opportunities With Local Mines (14/07/11)

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