http://www.miningmx.com/platinum/994...

From mine to market
Ines Schumacher
Posted: Mon, 13 Apr 2009

[miningmx.com] -- BRAEMORE RESOURCES aims to be the first company offering smelting services outside those offered by South Africa's platinum producers extracting the world's single largest known source of platinum group metals (PGMs).

Smaller miners have complained of onerous conditions in off-take agreements, and the South African government is keen to see the establishment of an independent smelter.

Growth in world demand for platinum is forecast to almost double over the next 10 years. Southern Africa produces more than 75% of the world's platinum supply and has reserves to continue to supply most of that growth in world demand.

Research published by Braemore and South African metals researcher Mintek suggests most emerging platinum mining companies intend producing flotation concentrates for toll treatment or sale under off-take agreements.

There are approximately 30 new PGM projects under review in South Africa by various emerging mining companies and only some of those projects have off-take agreements with the major PGM producers.

Platinum mining is becoming more UG2-based and the resulting concentrates contain high levels of chromite, unless blended with Merensky or Platreef concentrates. Existing technology can't cope with high chrome content and therefore charge more for those smelting operations.

Braemore subsidiary Independence Platinum has secured decade-long rights from Mintek to commercialise the researcher's patented ConRoast process that can treat chrome-rich concentrate. It also reduces sulphur pollution, a problem with existing smelting technologies.

"This has positive implications for PGM companies seeking to maximise recoveries from their resource and reserve base," Mintek's research says.

Braemore doesn't currently produce platinum ore or concentrate and hopes to secure concentrate from a burgeoning number of junior companies planning to bring projects into production.

The technology is important for the future of the South African platinum sector, which battles to treat concentrate high in chrome. The junior companies supply concentrate to the major companies like Anglo Paltinum and Impala Platinum, which charge hefty penalties if chrome limits are exceeded.

Braemore CEO Leon Coetzer has said the company is looking to do a deal this year whereby the technology could be deployed in a joint venture, a pool-and-share agreement or some other arrangement.

Analysts contacted say there were no available figures on how this smelter will affect juniors and were not willing to speculate on the impact it will have on future earnings and share prices.