CDB provides $650 million long-term, loan to Wesizwe Platinum for the Bakubung Platinum Mining Plant Construction Project (Linked to Project ID#58675, #58676, #2479)

In January 2013, Wesizwe Platinum Limited (or “Wesizwe Platinum”) — a South African mining company — announced that it had secured a $650 million loan from the China Development Bank (CDB) for the development of Wesizwe Platinum's Bakubung Platinum Mine, following approval from the credit committee of CDB in November 2012. The loan had an interest rate of six-month Libor plus a 3.5% margin, with a grace period of 6 years and a maturity of 15 years. The first drawdown from this loan occurred in January 2014. As part of the loan agreement, CDB and Wesizwe Platinum signed two separate $100 million short loan contracts in December 2012, which were to be refunded by part of the $650 million long-term loan. These short-term bridge loans are captured via Project ID#58675 and ID#58676. These financing arrangements are in accordance with the terms and conditions of an investment agreement between Wesizwe Platinum and China-Africa Jinchuan Investments (Pty) Ltd in May 2011, in which Jinchuan Group Limited and CADFund purchased 45% stake in Wesizwe Platinum (see Project #2479) and agreed to invest in the struggling Bakubung platinum mine. The Bakubung Platinum Mining Plant Construction Project reached the implementation stage, but its precise start and end dates are unknown. The mine, which has an expected economic life span of 35 years, is likely to manufacture 350,000oz of platinum group metals at a cost of R12bn per annum. Main commissioning was scheduled for 2018 and full production was anticipated in 2023.

Additional details

1. The transaction (financial commitment) amount is recorded as $450 million as the $650 million was used to refinance 2 short-term CDB loans worth $100 million each. This is done to avoid double-counting CDB's financial commitment amount. 2. In January 2013, the average 6-month Libor rate was 0.488%, so AidData has estimated the all-in interest rate by adding 0.488% to 3.5% (3.988%).

Number of official sources

5

Number of total sources

9