By: African Business insider

Mining billionaire Robert Friedland, through his company Ivanhoe Mines, has officially launched the first phase of the long-awaited $2-billion Platreef project in South Africa. The inauguration was attended by President Cyril Ramaphosa, who hailed the mine as a sign of a "bright future" for the nation's mining industry. This project represents a rare, large-scale investment in South Africa's struggling mining sector and is one of the most significant new mining developments on the continent.

The Platreef mine is described as a world-class deposit, touted by Friedland as "the world's largest undeveloped precious-metals mine." It is positioned to become a major low-cost global source of platinum-group metals (PGMs), including platinum, palladium, and rhodium, alongside significant quantities of nickel, copper, and gold. This positions South Africa as a strategic partner in the global energy transition, supplying critical minerals for green technologies.

The development of Platreef has been a vision 37 years in the making, with the deposit first identified in the 1980s. Its journey to production faced significant delays due to capital allocation priorities for Ivanhoe's other major projects, like the Kamoa-Kakula copper mine, and periods of low PGM prices. The company's strategy is to not build two "tier-one" mines simultaneously, leading to the rescheduling of Platreef's development timeline.

Ivanhoe Mines is committing a substantial $1.2 billion to the first two phases of the project. The current Phase 1 is described by Friedland as merely a "baby first step," with Phase 2 expected to begin operations in late 2027. A potential Phase 3, requiring an additional $800 million, could expand the operation to be ten times larger than its initial phase, highlighting the project's immense long-term scale.

The ownership structure of Platreef reflects a commitment to local economic empowerment. Ivanhoe Mines holds a 64% stake, while 26% is owned by Black economic empowerment partners, which include 20 local communities representing approximately 150,000 residents. This model ensures that a significant portion of the project's benefits are directed to the people living in its vicinity.

The project has already had a tangible local economic impact, becoming a major source of employment. Over 2,000 people are currently working on-site, with the majority hired from nearby communities. This direct job creation underscores the project's role in fostering local development and providing skilled work opportunities.

With Platreef now entering production, it is being positioned as a flagship for modern, high-tech African mining. It aims to supply critical minerals to the global green-energy market while simultaneously driving local economic growth, representing a new era for the South African mining industry and its role in the global energy transition.