Bauba Platinum to reopen Moeijelijk mine after chrome-ore price rebound
The chrome-ore price rebounding from a low of $80/tonne to about $380/tonne has prompted Bauba Platinum to re-open its Moeijelijk mine.
Bauba’s share price jumped 18% to 45c when the JSE opened on Thursday morning following its announcement.
In January 2016, Bauba placed Moeijelijk in care-and-maintenance after the chrome-ore price fell under $120/tonne, making the mine financially unviable.
"From a difficult position in 2016, Bauba has, having wisely preserved its chrome-ore reserves for more favourable prices, come into a stronger position and is well positioned to capitalise on these improved prices" Bauba CEO Nick van der Hoven said in a statement on Thursday morning.
Moeijelijk is expected to resume mining 20,000 tonnes of chrome-ore per month within three months, with the expected chrome grade to be between 39% and 41%.
Bauba reported a loss of R6.4m on R78.7m sales for the year to end-June in its results released on November 30.
The loss was partly due to a bad debt provision of R15m for 20,000-million tonnes of chrome-ore it delivered to a client which then filed for business rescue.
Bauba said in its results statement it had subsequently managed to recover 17,300-million tonnes from this client after taking legal action.