Industrial Development Corporation (IDC) announced investment of up to R3.24bn in a new platinum joint venture with private equity firm, Pallinghurst Resources and the Bakgatla-Ba-Kgafela community.

The state-owned investment agency stated this on Thursday. According to the terms of partnership, the IDC will hold a 16.2% stake in the venture immediately north of the Pilanesberg game reserve in the North West.

Pallinghurst confirmed the investment, stating the IDC plans to invest R3.24bn in the platinum venture which may create about 9000 jobs. Anne Frandsen, CEO of Pallinghurst  also explained that the venture aims stock listing within the next 12 months, with the Project forecast is set at 1,1-million oz of platinum group metals (PGMs) by 2016-2017.

“We will be listing the company on the JSE and an international exchange — either London or Hong Kong — within the next 12 months,” he said.

The venture will construct an independent platinum processing facility that will be opened to third-parties, offering junior platinum miners alternatives to the Anglo American Platinum and Impala Platinum smelters.

Pallinghurst will own 42% of the new platinum company, while the 350,000-strong Bakgatla community has paid R1bn for a 27% share. Other shareholders will have a 15% stake in the new company, which has a net asset value of R23bn.

Pallinghurst is a significant shareholder in the new venture which includes the assets of formerly JSE-listed company Platmin.