The board of London- and Toronto-listed Platmin has given the go-ahead for the construction of the R1.67-billion Pilanesberg platinum-group metals (PGM) project.

Production is scheduled to start in 2009.

Platmin CEO Ian Watson says the company has applied for a mining licence from the Depart-ment of Minerals and Energy, and expects a response in August or September.

The board's go-ahead for the project follows a positive feasibility study, which has indicated a life-of-mine of 16 years, with an average production rate of 250,000 oz/y of platinum, palladium, rhodium and gold for the first 11 years.

Production is expected to peak at 296,000 oz in 2010.

The presence of ruthenium and iridium in the ore and concentrates has the potential to improve project values.

The payback period on the capital outlay is expected within 2.5 years of first production.

Watson says the project, about 60 km north-west of Rustenburg, is expected to employ 500 people at full production, peaking at 800 during construction.

Engineering firm Dowding Reynard & Associates has been appointed to implement the design and construction phase of the project, which encompasses two openpits at the Tuschenkomst and Ruighoek properties.

The Tuschenkomst property will house a central concentrating facility.

Platmin has already placed orders on all long-lead items of the processing plant in order to meet the project deadline of starting production in the first quarter of 2009.

Executive deputy chairperson Keith Liddell says the decision to go ahead with project develop- ment is a milestone that "further advances Platmin's strategy of becoming a significant independent platinum group elements producer". "Platmin is now in the process of considering various funding options over the near term."

He adds that Platmin remains confident the project will provide "the mineral resources required to provide the critical mass necessary to continue our investigations into building an independent smelter".

Watson says any such smelter would ideally be designed for Platmin's own use, but that the company would like to make capacity available to other platinum miners as well.

Platmin holds a 72.39% indirect interest in the Pilanesberg project through Pilanesberg Platinum Mines, a wholly owned subsidiary of Boynton Investments, Platmin's operating subsidiary in South Africa.

Watson says the company has a JSE listing on its radar screen, but that there is no timeframe for this yet.