Bauba diversified its business into low-cost, cash-generative, mining operations in 2015 with the Company acquiring 60% of the beneficial rights to the Moeijelijk Chrome Mine.
Moeijelijk is situated on the Eastern Limb of the Bushveld Igneous Complex, with LG6A/6 and LG7 chrome ore-bearing reefs.
The operation is efficient, low-cost and cash-generative and through the exploitation of its near-surface and underground chrome resource, delivers run-of-mine chrome-ore and concentrate chrome from its washing plant to China.
The cash generated from this project will be used to:
Declare potential dividends to Bauba’s shareholders;
Self-finance the development of our existing low cost mines;
Fund the pursuance of additional mining projects; and
Progress the Bauba Platinum Project.
To date Bauba has:
Obtained a 30-year mining right for chrome-ore on the farm Moeijelijk 412KS;
Obtained a full water use licence from the Department of Water and Sanitation to extract water for both the open cast and underground mining operations;
Engaged and successfully worked with a reputable chrome-ore open cast mining operator, to mine 20 000 tonnes of LG6 run-of-mine (ROM) chrome-ore per month;
Contracted with a reputable underground mining operator, to mine underground 30 000 tons of LG6 ROM chrome-ore per month once development is complete; and
Put in place a chrome-ore off-take agreement for the supply of chrome-ore to China.
Established a wash plant that produces foundry, chemical and metallurgical grade concentrates for export to china.