Picture: BLOOMBERG/WALDO SWIEGERS
Picture: BLOOMBERG/WALDO SWIEGERS

Toronto- and Johannesburg-listed Eastern Platinum (Eastplats) said on Tuesday that it will invest an additional $6m (R90m) at its chrome recovery project near Brits in the North West.

It has started tailings retreatment at its previously mothballed Crocodile River Mine near Brits in the North West to extract chrome, and is now also extracting platinum group metals (PGM) concentrate.

The company entered into an agreement in March 2018 with Union Goal Offshore Solution to establish the operation at Crocodile River, saying at the time the estimated capital requirements were R164m.

Eastplats said on Tuesday that it had successfully produced PGM concentrate at the mine.

“This is the first step in the company’s full-scale assessment of the PGM recoverability of the tailings resource and provides further revenue opportunities for Eastplats,” said CEO Diana Hu.

“The company will continue to move forward with its assessment of the larger PGM recoverability opportunities in relation to the tailings resource.” 

In afternoon trade on Tuesday, the share price of Eastplats had fallen 39.67% to R1.81, though it has still risen 182% over the past 12 months.

Update: February 18 2020
This article has been updated with share price information.

gernetzkyk@businesslive.co.za