Wesizwe evolves into platinum miner from explorer

JOHANNESBURG, Aug 12 (Reuters) - South African black-owned platinum company Wesizwe Platinum Ltd (WEZJ.J) has transformed itself this year into a platinum producer from an exploration player, the company's acting chairman said on Tuesday.

Robert Raiy said the company completed a feasibility study on its flagship Frischgewaagd-Ledig project a year ahead of schedule, paving the way for the start of construction work and the production of ore in 2011.

"Wesizwe has had yet another very successful year which effectively marked the beginning of our transition from an exploration player to fully fledged platinum producer," he said.

The estimated life of the Frischgewaagd-Ledig project is 35 years, producing an average of 350,000 ounces per annum of platinum group elements by 2016. The project is expected to have an underground mine and a surface concentrator plant.

Wesizwe has planned for self-generation of power at the mine, with generators producing some 10 megawatts (MW) in the construction phase, and rising to 65 MW by 2016 at full output.

The self-generation was necessary following the power shortage crisis that engulfed South Africa since the start of the year, and led to the shutting of mines for five days as the power system faced a near-collapse.

Since then, mines have had to rely on around 90 percent of the normal power requirements, cutting output and putting long term expansion plans in jeopardy.

Wesizwe has raised some 500 million rand ($64.37 million) to fund the project construction phases until 2009, and further funds will be raised through debt and equity.

Wesizwe's stock was flat at 5.40 rand, while the mid-cap index .JMIDC added 0.67 percent.

(Reporting by James Macharia; editing by Christopher Johnson)