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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Gord Bolton who wrote (7008)	11/25/2002 7:21:36 PM
From: gg cox	Read Replies (1) \| Respond to of 7235

Lifted of of Stockhouse. stockhouse.com; SoutherEra mine expansion plans on track -------------------------------------------------------------------------------- Expansion will add to the country's output Industrial Correspondent CANADIAN mining company SouthernEra will start the development of three new platinum group metal (PGM) mines next year to push production up to about 420000 ounces by 2005 and to 550000 ounces by 2007. The expansion plans put SouthernEra on track to become one of SA's heavyweight PGM producers, and will add to the country's output which will reach 4,44-million ounces next year. The company officially opened its first mine last week at the Voorspoed section of its greater Messina property, which is situated on the platinum rich eastern limb of the Bushveld igneous complex. The mine would reach full production in the first quarter of next year, producing 220000 ounces of PGMs and gold a year from 2004 over 11 years. Among the most significant sale agreements SouthernEra had in place for output from the Voorspoed section was a five-year PGM supply contract with a "major" automotive company in North America. The deal is based on a floor price of $400/oz for platinum and 370/oz for palladium, and ceiling prices of $600/oz and $658/oz respectively. The second phase of SouternEra's expansion strategy comprises the development of the Doornvlei section of the greater Messina mine. Development on this section would start next year and the mine would produce 173000 ounces a year by 2005. It would have a 20-year life. Big production growth would come from the third phase of the programme, which comprises the development of the Dwaalkop and Voorspoed East sections. The build-up phase would span next year to 2006, with full production reached in the following year. The third phase would add between 340000 and 360000 ounces a year to SouthernEra's SA production. Dwaalkop and Voorspoed East would have a 30-year life. The Dwaalkop property will be developed in joint venture with empowerment company Mvelaphanda Resources. The property was previously owned by Anglo Platinum which ceded several properties on the eastern Bushveld limb to government last year. Government distributed the properties to new entrants in the platinum mining industry earlier this year, in line with its policy to open the mining sector up to black South Africans. SouthernEra and Mvelaphanda said they would possibly co-operate in mine development and mining with empowerment owners of contiguous properties. The deal allowed SouthernEra access to a new property and also raised its empowerment portfolio in line with government's requirements expressed in the mining empowerment charter. SouthernEra president and CEO Patrick Evans said at a platinum conference earlier this month that while SA's country risk profile had reduced since 1994, uncertainty about the mining charter had raised global concerns again. Uncertainty around the implementation of the charter had the potential to undermine the achievements of the past seven years, said Evans. "Business is now looking to government for leadership in removing these uncertainties," said Evans. SouthernEra, which remains the second largest investor in the SA mining sector since 1994, supported the new legislation for various reasons. Nov 25 2002 07:29:35:000AM Carli Lourens Business Day 1st Edition Monday 25 November 2002 BDFM Publishers (Pty) Ltd disclaims all liability for any loss, damage, injury or expense however caused, arising from the use of or reliance upon, in any manner, the information provided through this service and does not warrant the truth, accuracy or completeness of the information provided. BDFM Publishers 2002 Back to the top