Royal Bafokeng Platinum (RBPlat) has warned of an overrun on its R11bn budget to build a new mine that it initially slowed down to curtail spending at a time when platinum prices were weak and the demand outlook for the industrial and precious metal was uncertain. In its full-year results, RBPlat said the overall cost of the first phase of its Styldrift mine had increased, without giving a specific number apart from saying it would cost more than the original R11bn. During a results presentation RBPlat chief financial officer Martin Prinsloo said R6.09bn had already been spent on the mine. The company and its partner, Anglo American Platinum, would spend a further R4.75bn to bring the mine’s output to 150,000 tonnes of ore a month by the end of 2018 from the roughly 50,000 tonnes a month it was delivering now. To take the mine to its full capacity of 230,000 tonnes per month, a 100,000-tonnes-per-month concentrator would have to be built at a cost of R1.6bn, which would come on top ...

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