Platinum JV to benefit local communities

12 November 2004

The joint venture deal announced last week between black empowered South African prospecting and exploration company Africa Wide (AW), the wholly-owned South African subsidiary of Canada's Platinum Group Metals (PTM) and Anglo Platinum is said to have created “one of the larger assembled land positions situated right within the source of most of the world's platinum.”

The joint venture also said in a statement that it would facilitate the local community's participation in the economic activities of the deal.

The property is adjacent to the Styldrift project and the BRPM joint venture held by Anglo Platinum and the Royal Bafokeng Nation.

“We are particularly pleased with this agreement as it includes a North American venture capital company experienced in mining finance and mineral exploration,” said Mlibo Mgudlwa, CEO of Africa Wide.

“Companies such as PTM are ideally situated to assist black economic empowerment companies in capitalising on mining opportunities at a time when major transitions are changing the face of and, ultimately, adding to the profitability of South African mining.”

The aim of the venture is to pursue platinum exploration and the development of mining in the platinum-rich Western Bushveld Complex.

“The final agreement between the three parties constitutes a logical consolidation of mineral rights and expertise and which will maximise exploration potential over the area and, eventually, also will provide ample scope for the beneficiation of minerals,” Mgudlwa stated.

He reiterated that the joint venture is in full compliance of South Africa's recently-enacted minerals legislation.

The terms of the deal immediately satisfy the ten-year target for a 26% black economic empowerment interest in mining projects. PTM and Anglo Platinum will each own an initial 37% working interest in the joint venture, while Africa Wide will own an initial 26% working interest.

“PTM brought Africa Wide forward as a partner specifically because of their proven skills in facilitating community involvement in the development of projects,” explained John Gould, managing director of PTM's South African operation.

“Through Africa Wide, we have entered into a dialogue with the local community groupings in order to understand their needs and aspirations for participation in any potential development in the area.”

Africa Wide has been tasked to cooperate with local community groups in order to facilitate their eventual inclusion in the economic benefits of the deal. In addition, the consortium will actively be involved in training, job creation and procurement.

“We have already started to assist the community in the area of agriculture, which is in line with the mining charter's call for the upgrading of local living conditions,” said Mgudlwa.

“The issues of mutual respect should be common to any responsible development of a major mining project. Africa Wide will contribute greatly to the eventual success of this project by ensuring that the local community understands the full implications of the project and, by educating project managers to be sensitive to the needs and the strengths of the community.”

Credit: Research Channel Online publishes mining reports written and compiled by Creamer Media’s Research Unit. Key South African mining sectors receive in-depth coverage in Mining Focus. The reports are updated regularly and profile major participants and trends, providing an invaluable snapshot of selected mining sectors.