JSE-listed Wesizwe Platinum has suspended the construction of its Bakubung Platinum mine after the Ledig community members embarked on a march towards the mine.
Its shares plunged 6.51 percent to R1.58 on the news.
The platinum group metals exploration and mining company told its investors yesterday that the marchers blocked the mine entrance and delivered a memorandum of demand to the mine.
“Bakubung Platinum Mine is currently in a critical stage of project construction. The construction of the mining and concentrate processing system has not yet been completed and the schedule of the construction is tight with high targets,” Wesizwe said.
The forced closure affected the progress of the project, causing Wesizwe to suffer huge economic losses, it said, adding, “This has a serious impact on the employment of local community members, construction contractors, and subcontractors,” it said.
Bakubung Platinum Mine is Wesizwe's core project. The mine is formerly known as the Frischgewaagd-Ledig project. The project site is situated directly adjacent to the western side of the Royal Bafokeng Platinum Styldrift project and immediately north of Maseve’s Project 1, owned in partnership with Canadian group Platinum Group Metals.
According to the company, the main shaft is planned to have a hoisting capacity of 230 000 tonnes of ore plus 40 000 tonnes of waste per month.
Wesizwe said after the march it had engaged with the community, through its leadership, to find a solution regarding the community's demands to resume the construction of the project.
“Formal negotiations were held with the community on January 27, 2022 and an agreement was signed off by the Kgosi and the CEO. On January 31, 2022, further demands were made against the mine. On February 4, 2022, a meeting was held between management and community leaders,” it said.
Wesizwe said in January it had obtained a court interdict, but despite this intimidation of its employees continued and damaged to the mine property carried on.
“Management is working tirelessly to ensure a safe start-up of Bakubung Platinum Mine as soon as possible,“ the company said.
Last year Wesizwe Platinum had delayed the mine development of Bakubung Platinum due to a consequence of Covid-19 and its related impacts on the process plant construction schedule.
There were also delays in the public consultation, which the mining company required for the integrated water use licence application and the impact on environment assessment led to the delay of the commissioning of the tailings and stock pad.
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