Ridge Mining is understood to be considering building a major refinery in South Africa for its platinum group metal (pgm) and nickel mine.

The mining company is looking at the possibility of building a $200 million facility, with Industrial Development Corporation (IDC) helping to provide finance for the deal, according to MiningMX.

Although the potential of IDC coming on board is currently only theoretical, the move would see IDC recouping its investment by selling entitlement to the refinery to platinum juniors.

Speaking at Mining Journal's Platinum and Palladium Day in London this week, Francis Johnstone, commercial director of Ridge Mining, said: "We need to prove first that we can carry the cost of the refinery. It's possible the smelter could be hived off."

He added that any deal in relation to the smelting and refining would be "a major bonus".

Ridge Mining is currently developing its Sheba's Ridge mine, which is expected to be able to produce 24,000 tonnes of nickel, copper and pgms, while its Blue Ridge project, which is anticipated to produce 125,000 ounces of pgms, has also begun.

Sources:

IDC may adopt Pt refinery venture, 15/05/07
http://www.miningmx.com/special_reports/conf_cover/plat_week/865887.htm

Ÿ Adfero Ltd