Investing in the economy



IDC’s investment in Platmin Ltd represents four years of work by the Bagkatla tribe under the leadership of Kgosi Pilane and Pallinghurst investors to consolidate three separate mining properties into a regionally optimised mega mine (ROMM).

The ROMM located in the western limb of the Bushveld complex in Pilanesburg, North West, will lead to the creation of a mine of significant size allowing for mining of the ore body in a continuous and sustainable manner. Without consolidation, each of the properties would have been uneconomical to mine. The consolidation will unlock quite a number of synergies such as sharing of infrastructure and use of a single concentrator plant, enabling significant operational cost saving.

This is critical to Platmin’s prospects as the current economic environment, particularly in Europe and to some extent the USA, has reduced demand for platinum, resulting in a surplus and depressed prices in the market. In addition, an uncertain regulatory environment, together with escalating labour and rising energy costs have had a negative impact on the industry.

The ROMM has significant financial support from foreign investors, particularly sovereign funds in the Netherlands and Singapore, bringing much needed foreign direct investment to the country. It also has the potential to contribute significantly to industrial capacity development in a key sector of the South African economy, as well as creating sustaining job creating opportunities. IDC approved funding of R3.24bn for the acquisition of a 16.2% interest in Platmin. The funds are to be used to develop the ROMM and to expand the capacity of the plant. The funds are to be spent in the local economy, as virtually all the equipment and steel required will be sourced in South Africa.

On full implementation the ROMM is expected to create more than 10 000 jobs in an area affected by severe unemployment.

Building partnerships

The IDC’s capacity-building interventions in South Africa and elsewhere in Africa are motivated by the benefits potentially emanating from assisting our clients and DFI business partners in developing their requisite skills and knowledge bases.

Investing in communities

The IDC has adopted a framework to guide the development of rural areas and an important part of the corporation’s leadership in industrial development strategy focuses on support for priority sectors identified in the New Growth Path and Industrial Policy Action Plan.

R13.1 billion
R16.0 billion
18 922
3 950
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