Fin24

IDC to invest in platinum venture

2012-03-29 10:46

Johannesburg - The Industrial Development Corporation (IDC), a state investment agency, said on Thursday it would invest $420m in a new platinum venture involving Pallinghurst Resources [JSE:PGL] and the Bakgatla tribe.

The venture, which is targeting production of 1.1 million ounces a year within five years, is also aiming for a stock listing within the next 12 months, said Pallinghurst chief executive officer Arne Frandsen.

“We will be listing the company on the JSE and an international exchange - either London or Hong Kong - within the next 12 months,” he said.

The Johannesburg Stock Exchange, Africa’s largest bourse, is operated by JSE Ltd [JSE:JSE].

The venture will construct an independent platinum processing facility that will be opened to third parties, offering junior platinum miners alternatives to the Anglo American Platinum and Impala Platinum smelters.

The IDC will hold a 16% stake in the new venture while the Bakgatla, which represents the 350 000 strong Bakgatla Ba Kgafela tribe, has paid R1bn for a 27% share.