(Ecofin Agency) - Platinum miner Lonmin plc secured a $50 million funding for a Bulk Tailings Treatment (BTT) in South Africa. The firm announced that it has already received a first tranche of $9 million and that work has started.

Lonmin intends to re-process 26 tons of mine residues at a pace of 300,000 per month. Production is expected to begin in 2018. Once stable, the project should produce about 29,000 oz of platinum a year or around 55,000 ounces of Platinum Group Metals.

“The BTT project is part of our strategy to focus on low cost ounces to maximise our cash position and create value for all our stakeholders,” says Lonmin CEO Ben Magara.

Lonmin is the world’s third largest platinum producer.

Louis-Nino Kansoun