NKP 0.00% 9.9¢ nkwe platinum limited

bfs and infrastructure

  1. 4,863 Posts.
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    As we get closer to hopefully viewing some details of the Garatau BFS it will be interesting to see how TWP Holdings ( BFS Contractor) intends to resolve infrastructure issues.

    The good news is that TWP was involved with the total solution,construction and commissioning of the Anglo Modikwa mine next door to Garatau. With some luck and good management we should see a possible duplication of the BFS. The terrain is similar, same platinum reefs and requirements are similar.

    Labour

    I anticipate that NKP/Xstrata may need to build a township in close proximity to the mine.Another option would be to transport workers from nearby towns such as Driekop, Burgersfort etc.This would be a prefered cost option.

    In summary seeking a workforce should not present a problem. However unless reasonable salaries ( they are so low for miners) are offered strikes similar to those that occurred at Anglo last year may eventuate.

    Water

    This is a major concern in the very dry Bushveld Complex. There are few streams and demand is high especially from mining groups. A large proportion of locals do not have access to running water. Mining companies need to invest a lot of capital in piping and water management solutions. Local consulants such as GCS and Talbot and Talbot have the experience to assist. They were involved with Anglo's Modikwa mine.

    Electricity

    This has been a major problem in this district. In 2008 there were numerous power interuptions creating problems in the mines. You would not want to be caught underground when the lights go out!

    I read that GE Transportation has recently installed 26 emergency generators for Anglo's mining operations. Besides seeking access to a power line NKP/Xstrata will need to follow in Anglo's footsteps with standby generators.

    Roads

    Very few in the district. Mining companies will need to invest in road making from towns to mine sites. NKP's farms only have a few tracks.

    Summary

    Although all of the above present risks and cost constraints within the BFS I am sure that Xstrata was fully aware of mining development requirements when it agreed to the possible JV agreement.

    I cannot anticipate any other surprises in the BFS.Therefore Xstrata may not need the 90 day time period for a decision to proceed.

    Xstrata were keen on a single two farm BFS as stated in the Annual and Half Year reports to shareholders. I suspect they now want to get the show on the road asap and are happy with two BFS's.

    Not long to wait for the next exciting NKP episode.

    The above are my views. Please do your own research.

 
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