CDB provides $100 million bridge loan to Wesizwe Platinum for Bakubung Platinum Mining Plant Construction Project (Linked to Record ID#41600 and #58676)

Project narrative

In December 2012, Wesizwe Platinum Limited (or “Wesizwe Platinum”) secured two, $100 million short-term loan facilities with the China Development Bank (CDB) for the Bakubung Platinum Mining Plant Construction Project. The first loan of $100 million (captured via Record ID#58675) was drawn down in December 2012, and it was included in the cash balance of R1.4 billion at year-end. It was repayable on December 21, 2013, and it carried an interest rate of 6-month LIBOR + a 2.3% margin, payable in six monthly in arrears (calculated as 2.815% using the December 2012 6-month average Libor rate of 0.515 %). The second loan facility was to be drawn during 2013, after the finalization of the $650 million loan from CDB, as and when required (see Record ID#58676). It was repayable on June 21, 2014. Interest was payable every 6 months in arrears at a rate equal to the six-month LIBOR on the first day of the interest cycle plus 2.3% per annum (calculated as 2.788% based on the January 2013 6-month average LIBOR rate of 0.488% ). These short-term loans were to be refunded in part by a $650 million long-term loan and approved by the Credit Committee of the China Development Bank in 2013 (captured via Record ID#41600). This project reached the implementation stage, but its precise start and end dates are unknown. The Bakubung mine, which has an expected economic life span of 35 years, was expected to manufacture 350,000oz of platinum group metals at a cost of R12bn per annum. The main commissioning of the mine was scheduled for 2018 and full production was anticipated in 2023. The Bakubung platinum mine site is located near Rustenburg in the Western limb of the Bushveld Igneous Complex.