Tuesday, 24th October 2006 (1483 views)

The Bakwena Ba Mogopa community in South Africa has reached an agreement with African Platinum over its flagship Leeuwkop project on the western limb of the Bushveld complex.

As part of a black economic empowerment partnership with the exploration and development company, the Bakwena people will hold a significant proportion of equity in African Platinum's subsidiary, Afplats Proprietary Limited, which holds the New Order prospecting right for Leeuwkop.

The agreement stems from rules laid out in the South African mining charter, the goal of which is to "create a mining industry that will proudly reflect the promise of a non-racial South Africa".

It demands that mine ownership is transferred to black-run companies, thereby reversing the exploitation of mineral rights given to white-owned companies under apartheid rule.

A memorandum of understanding outlining the terms of the equity participation deal for the Leeuwkop project has been approved at a Bakwena community meeting, although full details of the agreement are yet to be announced.

According to African Platinum, construction of the first phase of the Leeuwkop project will begin in the first quarter of 2007. The first gold and platinum ore will be mined in 2008 and the mine is set to achieve full production by 2011.

 

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