South Africa's Industrial Development Corporation (IDC) recently called for expressions of interest from geological and mining consultants to undertake a technical review of the geology and mining aspects of a feasibility study for a platinum-mine.

The IDC has, at this stage, declined to be drawn on the location of the proposed mine or its joint venture partner (client) in the project. It even failed to reveal whether the prospect was located on the western or eastern limbs of the platinum-rich Bushveld Complex.

“The consultant will be required to pay special attention to the mine's ore reserve classification, according to the SAMREC and JORC codes, the mining method to be employed and capital expenditure programme to bring the mine to full production,” the IDC said in tender documents.

It is currently not known what the envisaged capital expenditure for the mine would be, as part of the consultant's study would be an evaluation of operating cost, capital requirements for the initial underground mining infrastructure and the ongoing capital/maintenance budget.

In addition, the successful consultant would be required to discuss detailed cost breakdowns of the required work programme and capital expenditure estimate to complete declines, to install the conveyor system, implement stoping and complete underground development operations on time and within the budgeted constraints.

“The client has already completed a definitive feasibility confirmed by external consultants and this information will be made available to the chosen consultant at its request,” the IDC stated, adding that the client intends to pursue a particular mining method and requires the consultant to evaluate the chosen mining method and mine plan in terms of appropriateness to the particular orebody at the mine.

This project comes at a time when observers are increasingly looking to junior platinum companies to fill a potential supply gap as the majors curtail project plans on the back of a stronger rand.

The world's top platinum producer, Anglo Platinum, for instance, has cut its 2006 production target to between 2,7-million and 2,8-million ounces from the previous target of 2,9-million. It pegged 2005 output at 2,6-million ounces.

Despite this, precious-metals consultancy Johnson Matthey said earlier this year that the world platinum market is seen moving towards surplus this year, and prices are expected to fall despite strong demand.

Johnson Matthey pointed out that the longer-term viability of planned new platinum-group metals mines in South Africa was uncertain, but expansions already in hand were likely to result in solid output growth.

However, the research house said earlier this week that a recent drop in platinum prices could drive fresh demand from jewellery manufacturers in Asia, but added that China, the world's biggest consumer of platinum jewellery, is likely to remain unmoved.

It is understood that Chinese platinum jewellery demand is estimated to have fallen 20%, to 960 000 oz, in 2004 due to higher prices, the promotion of white gold and the rapid development of a palladium jewellery market.