The second-largest platinum producer in the world, Impala Platinum (Implats), is to partner with Australian mineral explorer Impact Minerals in a new strategic alliance to explore and develop nickel/platinum deposits in South-ern Africa, reports Impact Minerals.

The alliance is designed to allow Implats to rapidly expand its platinum output, while delivering Perth-based Impact considerable upside exposure to Southern Africa’s proven nickel provinces.

The alliance agreement provides for the exploration and development of nickel and platinum-group metal (PGM) deposits in many countries in Southern Africa.

Under the terms of the agreement, Implats will spend $800 000 on project generation over the next two years.

Implats can then earn 50% of any project selected for development by free-carrying Impact for the first $2-million of project expenditure.

Impala has to spend $1-million before being able to withdraw from a project.

Impact reports that the alliance was the most significant development in the com- pany’s history, since it listed on the Australian Securities Exhange in November 2006, with a suite of nickel, gold and uranium assets across Australia.

“The alliance is a strong endorsement of Impact’s business strategy and technical skills in both project generation and exploration in Africa,” states Impact Minerals MD Mike Jones.

He explains that nickel is a natural by-product credit from platinum production and Impala is looking to increase its production of both these metals.

“It is, therefore, in Impala’s interest to find an exploration partner with proven technological expertise in nickel, such as Impact, to ensure Implats’ global platinum objectives can be more readily met,” states Jones.

In addition, any projects not meeting Implats’ requirements revert 100% to Impact, reports the company.

“From Impact’s point of view, it provides our company with a significant percentage interest in what will be aggressive exploration campaigns for nickel, one of Impact’s core exploration businesses and focuses,” says Jones.

The alliance starts immediately with Implats having first right to earn equity in any projects identified.

Some of the Southern African countries included in the alliance’s focus are Botswana, Mozambique, Namibia, Zambia, Madagascar and Malawi. In December last year, Impact announced its first foray into Africa’s resources sector, apply- ing for prospecting licences in Botswana and appointing former Ontario-based natural resources company Falconbridge group director John Blaine its COO in Africa, reports the com- pany.

Implats has other large interests in and operates numerous mines, together with a wholly owned smelting and refining service near Johannesburg.

The company currently produces about one-million ounces of platinum and 7 000 t of nickel a year.

“We will commence working with Implats at a time of record prices for platinum, with demand being driven by the autocatalyst and jewellery industries at a time of decreased supply from South African mines,” concludes Jones.