Pallinghurst Resources Ltd. (PGL), a commodities investment firm founded by former BHP Billiton Ltd. (BHP) head Brian Gilbertson, said the Industrial Development Corp. of South Africa is investing $420 million in a mining venture.
The IDC will hold a 16.2 percent stake in the platinum venture focusing on operations in the country’s North West Province, Pallinghurst said today in a statement. The new company will include interests owned by Pallinghurst and the Bakgatla Ba Kgafela tribe, it said.
The venture “will certainly transform the local platinum mining and beneficiation landscape,” Geoffrey Qhena, chief executive officer of the Johannesburg-based IDC, said in the statement. “IDC’s equity funding is the catalyst that is required to implement the consolidation plan that has been developed by Pallinghurst over the last five years.”
The venture around the Pilanesberg Platinum Mine may create as many as 9,000 jobs, Pallinghurst said. The resource base of the new company is about 70 million ounces of platinum group metals, it said.
Pallinghurst rose as much as 6.5 percent to 3.30 rand in Johannesburg trading, the highest intraday price since Feb. 1.
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