May 2014
MODERN MINING
5
MINING News
Platinum Group Metals (PTM), based in
Joburg and Vancouver, reports – in its
financial statements for the six months
ended February 28, 2014 – that it has thus
far invested US$281 million in the devel-
opment of its WBJV Project 1 platinum
mine (also known as Maseve), located near
Sun City.
At Project 1 PTM’s owners’ team
oversees engineering, procurement,
construction and management firm
DRA Mineral Projects and underground
mining contractor JIC Mining Services.
Including sub-contractors, there are
approximately 1 350 persons at present
involved in underground development,
mining and construction activities on site.
Approximately 3,8 million man hours of
construction work have been completed.
Underground development has
reached the Merensky Reef, and initial
mining blocks are in planning and early
development. Stockpiling of early ore is
underway. Crusher, mill and flotation cir-
cuit foundations are constructed to above
ground level. Mill components have been
ordered and are being fabricated with a
number of items now complete. A 10 MVA
electrical supply was completed and ener-
gised in October last year. Two ventilation
raises and fans are now functional and
underground mining of multiple declines
and headings continues.
Capital costs have generally been
within budget, and first concentrate pro-
duction is targeted for calendar fourth
quarter of 2015.
PTM says that on 3 March 2014 Africa
Wide failed to pay approximately US$21,52
million for its share of a unanimously
approved cash call. This follows its deci-
sion on 18 October 2013 to not fund an
MDM Engineering secures Sibanye contract
MDM Engineering Group Limited, listed
on AIM, has been awarded the EPCM con-
tract for the execution of Sibanye Gold’s
Driefontein number 2 metallurgical plant
(DP2) gold project.
Sibanye has three principal operations,
namely Kloof and Driefontein in the west
Witwatersrand region and Beatrix in the
Free State. The company is the largest pro-
ducer of gold in South Africa and amongst
the top ten largest gold producers globally.
The scope of work for the DP2 project
includes the EPCM of an 180 000 tonnes
per month true Carbon-In-Leach plant that
can be expanded with a duplicate plant to
300 000 tonnes per month in future. The
project is scheduled for completion in the
last quarter of 2014.
“MDM are pleased to be working with
Sibanye Gold on yet another one of their
projects. This is MDM’s 12th gold project in
South Africa and 33rd gold project overall,”
comments John Edwards, MDM Principal
Process Engineer.
US$281 million invested in Maseve to date
A recent view of the WBJV Project 1 platinummine near Sun City showing the main elements of the
project (photo: PTM).
approximate US$21,8 million cash call for
its 26 % share of a unanimously approved
six month forward construction budget for
Project 1.
PTM estimates that Africa Wide will
dilute to approximately a 17,1 % holding
in Maseve as a result of the second missed
cash call. Africa Wide disagrees with the
dilution calculation and the matter has
been referred to binding arbitration which
will confirm the formula. The company is
currently working on a plan to sell Africa
Wide’s diluted interest in Maseve to quali-
fied BEE partner Mnombo.
