Bengwenyama platinum group metals project, South Africa

15th March 2024 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Bengwenyama platinum group metals project, South Africa

Name of the Project
Bengwenyama platinum group metals (PGMs) project.

Eastern Limb of the Bushveld Complex, in Limpopo, South Africa.

Project Owner/s
Southern Palladium.

Project Description
A scoping study has shown the project to have very attractive economics, with results justifying a prefeasibility study (PFS) already under way.

The project aims to extract PGMs from the upper group two (UG2) and Merensky reefs, which constitute one of the very few remaining areas within the Bushveld Complex where economically viable PGM deposits remain unexploited.

The scoping study proposes a two-million-tonne-a-year UG2 reef underground mining operation using hybrid mining, with conventional stoping supported by on-reef mechanised development and ore clearance.

The life-of-mine for only the UG2 reef is estimated at 36 years, with a total of about 52-million tonnes mined – about 10.9-million ounces platinum, palladium, rhodium, ruthenium, iridium, osmium and gold (7E or 6E+gold), for an average production rate of 330 000 oz/y platinum, palladium, rhodium, ruthenium, iridium and gold (6E or 5E+gold) basis ignoring residual value beyond modelled life or any exploration

The project includes:

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate of, $1.04-billion and an internal rate of return of 24%, with a payback of from the start of plant production of 4.5 years.

Capital Expenditure

Planned Start/End Date
The completion of the PFS and associated resource drilling is planned to be completed during the second half of calendar 2024 and is fully funded.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Southern Palladium, email