The deals with its subsidiary Barplats Mines and Union Goal Offshore Solution were first signed in March and September 2018, respectively.
Under the new retreatment deal, Crocodile River mine will see re-mining and processing of its tailings resource of platinum group metals, as well as an offtake agreement for chrome concentrate with Union Goal from the Barplats Zandfontein UG2 tailings facility.
Eastplats reviewed its project operations for 2019 and 2020, and noted the excellent operating results achieved, which led to the updated retreatment agreements.
Among the benefits of resigning: a formalisation of the companies' 2019 agreed rate per-ton of R40.26 (US$2.70), a 29% increase in the recovery rate; and the recognition of the total capital recovery of the project required by Barplats.
It also has extended the due date for a construction loan and equipment payment to 210 days following commissioning of the optimised equipment and circuits, as they are currently on delay due to the pandemic, and updated warranties on all optimised equipment;
"The Retreatment Project and the magnetic separation technology utilized have transformed Eastplats…into a resource company generating revenue and mining operation income from chrome concentrate, PGM operations and revenue, and multiple project opportunities for 2021 and beyond," president and CEO Diana Hu said.
Eastplats, which owns a number of PGM and chrome assets in South Africa, first commenced mining at Crocodile River in 2005. The PGM mine is located 70 kilometres from Johannesburg in the North West province.