JOHANNESBURG (miningweekly.com) – Johannesburg Stock Exchange AltX-listed emerging mining company Mantengu has obtained consent to take charge of Blue Ridge Platinum, which is currently on care and maintenance, but on which Mantengu will implement a phased operational strategy, investing initially in plant and equipment to produce chrome and PGM concentrate from the available stockpile.

Through the acquisition of dormant Blue Ridge, Mantengu has been provided with a chrome mining and PGM mining opportunity by PGM major Sibanye-Stillwater, Imbani Platinum, the State-owned Industrial Development Corporation (IDC) and the State-owned Development Bank of Southern Africa (DBSA).

Located in South Africa’s Limpopo province, Blue Ridge is an upper group two (UG2) PGM mine with an integrated ore processing plant that was placed on care and maintenance in 2011 by Aquarius.

Mantengu stated in a Stock Exchange News Service announcement on July 21 that it had obtained Ministerial Section 11 Mineral and Petroleum Resources Development Act consent to take charge from August 1.

Blue Ridge is a 300-m-deep mechanised UG2 mine with a 20-million-tonne to 32-million-tonne expected resource and it comes with a one-million-tonne stockpile that is earmarked for initial-phase recovery of 375 000 t of chrome concentrate and 35 000 oz of PGM concentrate at the lower end of the cost curve.

If an 18-month bankable feasibility study confirms economic viability, Mantengu will pursue underground UG2 mining for early cash generation.

Mantengu CEO Michael Miller conveyed his deepest gratitude to Sibanye Stillwater, Imbani, IDC and DBSA for giving Blue Ridge “the very best chance of future operational success”.

“Under Mantengu’s leadership, it will become a sustainable and profitable operation that supports the local economy,” Miller predicted in a media release to Mining Weekly.

After Mantengu initially taking ownership of 100% of the ordinary shares, 30% of the ordinary shares will subsequently be distributed to strategic empowerment partners, including 5% allocated to newly formed employee and community trusts respectively, ensuring that the mine’s employees and local communities share in success. Over the next three years, Blue Ridge is expected to add R1-billion-plus to Mantengu’s equity and a similar number in free cash flow.

“Blue Ridge should add R3 per share to the wealth of Mantengu’s shareholders. This does not take account of any future potential in respect of underground mining,” Mantengu CFO Magen Naidoo stated in the release.

On its website, Mantengu describes itself as a promoter of rural investment into sustainable mining projects on a totally inclusive, participative and equitable basis, with its investment methodology following a “compassionate capital approach” whereby capital is made available for targeted rural investments.

“This acquisition and Mantengu’s philanthropy providing both the newly formed employee and community trusts a free carry for their equity stake in Blue Ridge is testament to Mantengu’s commitment to empowerment and creating new wealth in South Africa. We have put our money where our mouth is and firmly believe that our investment will drive economic growth around Groblersdal and the Elias Motsoaledi local municipality,” Naidoo added.

Access to funding promotes the optimal use of community assets, the website continues, so that local people and their communities can realise value from their assets on a sustainable and long-term basis.

“The policies, programmes and strategies of all projects have been specifically designed to tackle job creation, broad-based wealth creation throughout all of the levels of the rural economy, skills transfer, rural infrastructure, food and energy security and biodiversity integrity, the website adds.

“This investment is a testament to our belief that South Africa has significant resource potential and the power of innovative, sustainable business practices to unlock it,” stated Jonas Tshikundamalema, the chairperson of Mantengu, which is focused on investments in the mining, mining services, and energy sectors.

In February, Mantengu acquired Masorini Iron Beneficiation iron plant in Phalaborwa, Limpopo, for R18.97-million.

The iron plant converts superfine iron-ore into metallic products at the low end of the production cost curve.

Mantengu is the Tsonga word for the small, resourceful fork-tailed Drongo bird.