Tharisa PLC (LON:THS) is mulling a shift to becoming an owner miner at its platinum/chrome mine in South Africa.
The mine currently has an open pit life of 18 years and a further 40 years underground with operations currently contracted out to MCC Contracts Proprietary.
Its parent company Extract is reviewing its business model and has offered Tharisa the opportunity to purchase MCC's existing on-site plant and equipment as well as take on its employees currently working at the mine.
Tharisa is now in discussions with MCC about an orderly handover of the mining operation and to purchase a requisite portion of the existing mining fleet as a going concern.
Given the mine’s long mine life, the transition to an owner mining model is a logical progression in its development, Tharisa added.
“The change in the operating model is expected to have both cost and operational benefits as well as providing financial flexibility, thereby cementing Tharisa's low-cost high margin position.”
"Tharisa has spent the last two years building up its mining expertise and we are now happy that we have the necessary skills to make a smooth transition,” said Phoevos Pouroulis, Tharisa’s chief executive.
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