JSE-listed platinum explorer and chrome producer Bauba Platinum has concluded a contract for the design, construction and commission of a chrome spiral circuit wash plant and primary crushing circuit at its Moeijelijk mine, in the Limpopo province of South Africa.
South Africa – The upgrade of the plant is being under taken for a total consideration of R18.4 million.
The plant, which is expected to be commissioned by July 2018, will upgrade Moeijelijk’s current chrome ore run of mine (ROM) saleable product into a lumpy and then foundry, chemical and metallurgical grade concentrates.
The crushing circuit will have a monthly capacity of 41 000 t of chrome ore ROM. Lumpy chrome ore, which also attracts a pricing premium to ROM, will be screened during this crushing process. The spiral wash plant will have a planned monthly feed capacity of 35 000 t.
This product diversification will enhance Bauba Platinum’s profit margins and diversify its revenue stream into less volatile, premium speciality grade chrome ore products.
This plant allows for increased production when the company’s underground mine is at stable production of 30 000 tpm. Stable planned underground production is still on track to be achieved by the first half of Bauba Platinum’s 2019 financial year.
The purchase consideration of R18.4 million will be settled in cash as follows:
- 3 million in February 2018;
- 8 million in March 2018;
- 8 million in April 2018;
- 8 million in May 2018;
- 9 million in June 2018; and
- 8 million in August 2018.
“Along with the development of our underground mine, the commissioning of this wash plant will further enhance Moeijelijk’s profitability and value,” says Bauba Platinum’s CEO Nick van der Hoven.
Underground chrome development begins
Bauba Platinum launched the underground development phase at the Moeijelijk mine on 16 February.
The company anticipates that it should be producing near to full production of roughly 30 000 tpm of chrome ore by December this year.