South Africa: Ridge Mining Seeks $707 Million for Project
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Business Day (Johannesburg)
18 July 2008
Posted to the web 18 July 2008
Charlotte Mathews
Johannesburg
RIDGE Mining, the London-listed company building a $200m platinum mine at Blue Ridge near Groblersdal in Mpuma- langa, is talking to several parties about financing a second project, the nearby $707m Sheba's Ridge mine.
Chairman Oliver Baring told Ridge's annual general meeting in London yesterday management was talking to, among others, its 19,9% shareholder Zijin Mining, which had expressed an interest in participating in Sheba's Ridge.
In the company's latest annual report, it said that given the size of the project, which is above Ridge's market capitalisation, financing would be a challenge.
It would involve examining the gearing that might be available, the possible equity participation of an offtaker or major mining company and bringing in a black empowerment partner.
Ridge commercial director Francis Johnstone said no firm decision on taking a secondary listing on the JSE had been made yet. If if Ridge decided to go ahead, it could raise some money initially in Johannesburg to facilitate trade in its shares. The full funding would not be needed for at least a year.
Sheba's Ridge is a nickel and platinum group metals project, in which Angloplat holds 35%, the Industrial Development Corporation (IDC) 26% and Ridge 39%.
Once a decision is taken to mine, Ridge can increase its stake to 61,5% by acquiring some of Angloplat's shares. Johnstone said this would cost Ridge $12,5m.
The feasibility study published last month showed Sheba's Ridge could produce 23000 tons of nickel, 11000 tons of copper and 352000 oz of platinum group metals a year.
Ridge has now proceeded to a bankable feasibility study in conjunction with the IDC, Impala and African Rainbow Minerals into building an independent smelter serving mines on the eastern limb, since there is not enough capacity in SA to process the 600000 tons of concentrate that Sheba's Ridge will produce annually.
Baring said a stockpile of ore was being built up at Blue Ridge to put through the concentrator plant, due for completion by November. At full production Blue Ridge should produce 149000oz of six platinum group metals.
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Blue Ridge is 50% owned by Ridge Mining and 50% by empowerment partners Imbani Platinum.
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