Chinese consortium to invest $877 million in South Africa's Wesizwe Platinum
26 May 2010
A Chinese consortium has agreed to take a controlling stake in South Africa's junior platinum producer Wesizwe Platinum Limited by investing $877 million in a debt and equity financing deal - the first time China is taking a stake in platinum reserves in Africa.
China state owned unlisted Jinchuan Group Limited and the China-Africa Development Fund (CADFund) will pay approximately $227.53 million for a 51-per cent stake in Wesizwe Platinum.
Jinchuan and the CADFund have separately secured a letter of commitment from the China Development Bank for $650 million in project finance facility to develop Wesizwe.
Platinum's Frischgewaagd-Ledig project on condition of completion of the equity component.
Johannesburg-based Wesizwe Platinum Limited is a platinum group metals exploration and mine development company with projects in the western part of the Bushveld Complex close to Rustenburg in the North West province of South Africa.
Wesizwe's core project is the Frischgewaagd-Ledig Complex, which has the potential to become a high-performing producer of 350,000oz of platinum group metals (PGMs) annually.