Zimplats
In March 2001, Implats announced the acquisition of an effective 40% stake in the Ngezi-Hartley assets of the Zimbabwe Platinum Mines Limited (Zimplats) group. The transaction was structured on two tiers in line with Implats’ modus operandi of investing in both the parent and operating companies.

First, Implats acquired from Delta Gold Limited a 30% stake in Australian-listed Zimplats in a joint venture with South African financial institution ABSA Bank Limited, for an amount of R131 million (US$16.3 million or A$22.1 million). Implats holds pre-emptive rights over ABSA’s stake and ABSA has signaled its intention of retaining its holding for the short-term only. Delta Gold continues to hold 21% of the company, with the balance held by minority shareholders.

At the second tier, Implats holds a 30% direct stake in the Ngezi-Hartley project, which comprises the now abandoned Hartley Platinum Mine, the Ngezi project and the Selous Metallurgical Complex (SMC). The purchase consideration still to be paid in respect of this stake is an amount of R240 million (US$30 million). The deal follows the completion of a bankable feasibility study by independent consultants, SRK.

Ngezi is located some 75 kilometres from the SMC and has the potential to produce 100 000 ounces of platinum (200 000 ounces of pgms) per year. The orebody, which lies about 20 to 50 metres below surface, will be accessed by open-cast mining methods. Ore will be transported via Australian-style road trains to the SMC and smelter matte will be transferred via road to IRS in South Africa.

Good progress has been made in preparation for production in mid-2002, with the construction of a road from Ngezi to the SMC currently underway. Production is scheduled to begin in 2002, with full production being attained by later in the year.

Zimplats holds extensive mineral rights on the Great Dyke and it is Implats’ intention to participate further in these in the longer term.

Two Rivers
In May 2001, Implats and Anglovaal Mining Limited announced the joint acquisition of the pgm mineral rights to the farm Dwars Rivier from Associated Manganese Mines of South Africa Limited. Implats will acquire its 45% stake in the resultant Two Rivers Platinum project for an amount of R248 million (US$30 million).

The project is located on the Eastern Limb of the Bushveld Complex, south of the town of Steelpoort in South Africa’s Mpumalanga province. Exploration drilling is currently being undertaken to confirm preliminary evaluation of the resource of 50 million tons of UG2 reef. A feasibility study is currently underway to determine the optimal design and output of the mine which is expected to be in the region of 100 000 ounces of platinum per annum. The mine will have a 20-year life and come into production in 2004.

The mine will be operated by Avmin (holding 55%), who will also market the base metals production which will be toll-refined by IRS. IRS will smelt and refine the concentrates and market the resultant pgms.

Mimosa
During the year Implats negotiated a 35% stake in Mimosa, the only successful platinum mine currently operating on the Great Dyke and arguably the lowest cost primary pgm producer in the world, for a consideration of US$30 million. IRS has had a smelting, refining and marketing agreement with Mimosa since production began five years ago.

The deal was announced post year-end in July 2001, with Mimosa signaling its intention to increase production by 50 000 ounces per year to 68 000 ounces per year by 2003.

Philnico
The group’s nickel strategy to reduce capital and operating costs of the base metal refinery by sharing them with a nickel mine, remains in place. How the Philnico project at Nonoc fits into this strategy still rests on the ability of the sponsors to deliver, as a partner to the project, a major nickel player and the necessary funding for the balance of the project. Until that stage, the project remains on hold. In the meantime, the feasibility study was completed on time and within budget.