Lonmin gains $50m funding for Bulk Tailings Treatment project
South African platinum miner Lonmin has secured funding of $50m for the Bulk Tailings Treatment (BTT) project.
The funding was secured through a particular project finance metal streaming arrangement.
The first part of project funding of $9m has been secured.
Following receipt of the first tranche, work has started on the project.
Lonmin chief executive Ben Magara said: "The BTT project is part of our strategy to focus on low-cost ounces to maximise our cash position and create value for all our stakeholders.”
The BTT project entails re-mining of Lonmin’s Easterns Tailings Dam.
This project involves reprocessing 26 million tonnes of Tailings material at a rate of 300,000t every month.
Lonmin expects to commission and ramp-up to full production during the 2018 financial year.
Once the project achieves a steady-state, it will produce about 29,000oz of platinum per year, at a yield of 0.5g per tonne.
This project is part of Lonmin’s business plan and is expected to generate the lowest cost ounces in the Lonmin portfolio.