The chief executive of Khumama has given further details on the planned joint venture with Anglo Platinum (Angloplats) at its Booysendal platinum group metals (pgm) property on the Eastern Bushveld in South Africa.

The empowerment group, which will bring two of its own properties into the joint venture - one deep and another shallow reserve - will fund 50 per cent of the total development

Paseka Ncholo, revealed the development of the underground mine would cost in the region of R2 billion.

'It's a lot of money, but its down from about R3.6 billion when we started looking at the project,' he told Mineweb.

Mr Ncholo also confirmed that the mine was expected to produce somewhere in the region of 200,000 ounces of platinum each year.

Khumama has been granted the mining rights for the programme, and will represent Angloplats' partner under the terms of South Africa's Black Economic Empowerment Policy.

Menawhile, industry experts such as Rene Hochreiter, platinum analyst at Nedcor Securities, have been assessing the move.

Mr Hochreiter suggested it was part of the group's broader expansion plan and a good move for Angloplats.

'I like it because its got a good platinum to palladium ration, about 2:1. Its better in the South than it is in the North,' he explained to Mineweb.

Although Angloplats and Khumama are essentially equal partners, analysts say they expect the final earnings split to be slightly skewed in Angloplats' favour.