Tokyo-based Itochu Corp is to acquire an eight per cent stake in a platinum and nickel mining project in South Africa.

Itochu said today (June 3rd) that it will pay Ivanhoe Nickel & Platinum Ltd 22.4 billion yen (£169.3 million) to take its shares in the Platreef project to ten per cent.

The Platfreef project is located in the Northern Limb of the Bushveld Complex, which accounts for over 70 per cent of global platinum production.

Exploration drilling since 2000 has confirmed good platinum group metal (pgm) mineralisation with nickel, copper and gold, said Itochu in a statement.

A major high-grade underground deposit with excellent potential for expansion has been discovered.

Mining is expected to start in 2017, Itochu spokesman Yasuhiro Terashita told Bloomberg, which also reports that the operation will produce 20 tonnes of pgms annually.

Located adjacent to Anglo Platinum's Mogalakwena Mine, Itochu believes the Platreef project can be developed as a major underground pgm mine.

"The parties have agreed that the proceeds that Itochu provides for this transaction will be spent on further exploration, a feasibility study and initial development of the project," the statement said.

Source:

Ivanhoe Sells Itochu 8% Stake in Nickel, Platinum Project in South Africa (03/06/11) 

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