Eland Platinum will sell R350 million of shares to investment house Al Rajhi Holdings to help fund the development of its mine in the Bushveld complex.

The sale means that the South African mining company will be almost halfway to its target of R800 million, which will be used to finish work on the R146 million mining operation on the western section of South Africa's mining centre.

Once the mine is complete in 2011 it is expected to achieve an annual output of 410,000 oz of platinum group metals (pgms), of which 160,000 oz is expected to come from its existing operations with 270,000 oz produced by the new underground mine.

Commenting on the progress of the mine, Eland Platinum chief executive David Salter told Miningmx: "The project is just over halfway to completion. We are on target and the plant will be ready for October."

Al Rajhi Holding's acquisition of the shares will bring its stake in Eland Platinum to 11.2 per cent, and comes at a time when the industry is rife with speculation that the firm is to be sold.

Since the company was listed in March 2006, mining giants including Anglo Platinum, Lonmin and Impala Platinum have been suggested as likely to mount buyout bids.

Ÿ Adfero Ltd