Northam Platinum may reschedule its Booysendal project following Impala Platinum's withdrawn takeover bid and falling pgm prices, Business Report claimed on Friday (16th January).

Impala, the world's second-largest platinum producer, confirmed last week that it has shelved its R21 billion bid to take over Northam and its majority shareholder, Mvelaphanda Resources.

Now James Wellsted, a spokesman for Mvelaphanda, revealed that the mine - thought to be one of the main factors in Impala's offer - could be developed in five phases rather than one.

He told the news provider: "Northam can stagger the development of the deposit to suit the prevailing economic circumstances and its funding requirements."

Mr Wellsted added that a review will be undertaken and that if the project is subsequently split into stages, the path to the proposed production of 430,000 PGM oz would be delayed and returns would be compromised.

His comments come after Justin Froneman, a platinum analyst at Macquarie First South, claimed on Friday that the mine may be built in four R2 billion phases over ten years, according to Business Report.

Mr Froneman also expressed his belief that the recent falls in pgm prices will mean that the development would be slowed, with steady-state production reached by 2020 rather than 2015.

This view appeared to be shared by a fund manager who suggested that Northam may have decided that building Booysendal "bit by bit" is the best approach to the project.

The manager, who wished to remain anonymous, told the news provider: "In the original plan, when Anglo Platinum was involved with the project [several years ago], it was to be broken down into different parts."

Source:

Northam likely to reschedule Booysendal project (19/01/09)
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