West Wits Mining Limited’s (ASX:WWI) mining rights application for the Witwatersrand Basin Project (WBP) has been accepted for processing by the South African mining regulator.
This marks the start of the company’s transformation into a junior gold miner.
A decision on approval will be made within 300 days, enabling WWI to scale-up mining operations at several sites concurrently across the WBP from the first half of 2019.
WATCH: West Wits Mining on its way to becoming a ‘full scale production company’
Chairman Michael Quinert said acceptance of the application as a valid application for processing marked the real start of WWI’s transformation.
“The timing is fortuitous as the Board notes the investment climate for foreign investors in South Africa’s mining sector has improved, with the new administration adopting a business centred strategy.
“During the intervening period, however, the team is focused on expanding the resource size to comply with the JORC 2012 code.
“The focus is also on commencing mining operations on the Main & South Central and Kimberley West open-pits once regulatory approval is granted.”
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WWI’s conglomerate gold strategy also encompasses prospects in the Pilbara region of Western Australia.
Securing mining rights in South Africa is a rigorous process as the regulator enforces tough environmental standards and requires the applicant to consult widely.
WWI has demonstrated that it has the capacity to meet its environmental obligations via rehabilitating pits 1 and 2 at the Kimberley Central open-pit.
Engaging with communities
The management team is highly proactive and engages positively with local communities and stakeholders.
Once regulatory approval is secured, it opens up options to have concurrent mining operations at several locations across the WBP, enabling the production platform to be rapidly scaled.
WWI is encouraged by President Cyril Ramaphosa’s intention to create a conducive investment climate with a business centred strategy in South Africa.
Creating a balanced mining charter acceptable to all stakeholders and that will attract significant foreign investment is broadly favourable for WWI’s forward plans.
Resource estimate upgrade
The immediate focus for WWI’s South African team is two-fold:
- Complete a mineral resource estimate update for the Kimberley Reef on the historical Rand Lease area to bring it into the current JORC framework; and,
- Prepare for mining at Main & South Central and Kimberly West open pits, once regulatory approval is secured on the two mining permits. These were submitted in April and are expected to be received in the latter half of 2018.
Rain impacts production
Production at Kimberley Central open-pit in March-April was lower than expected mainly due to extremely heavy rainfall that hampered mining and processing.
The inclement weather was compounded by a bottleneck at the processing plant which left about 4,450 tonnes of ore stockpiled at April 30.
Weather patterns have since returned to normal with production and processing targets for May on track to being achieved.