Platmin Limited (TSX/AIM: PPN) announced that it had accepted a quote from South Africa's power utility, Eskom, to supply 37MVA of new power for its Pilanesberg Platinum Mine on the western limb of South Africa’s Bushveld Complex. Eksom is already providing 1.5MVA of power for the construction phase of the mine, which Platmin reconfirmed is on track for production to begin in the first quarter of 2009.
Ian Watson, CEO of Platmin said today:
“After extensive engagement with Eskom for several years, securing of the power supply is an important milestone in our plans to bring the Pilanesberg mine into production early next year. We are confident that Eskom will meet their contractual commitment to supply grid power to PPM in time for production start-up”
“Power costs at PPM are expected to be approximately 6% of the operating costs, or US$32/oz of 3PGE+Au, compared to 10-20% in the peer group of underground platinum mines within the Bushveld Complex. This low power utilization, coupled with open pit mining, makes our operation less sensitive to power outages than the industry in general.”