By: Mining review Africa

The studies comprise a feasibility study for the Phase 2 expansion (4.1 Mtpa FS) and a preliminary economic assessment for Phase 3 (10.7 Mtpa PEA), highlighting Platreef’s potential to become the world’s lowest-cost primary platinum-group metals (PGM) producer. Production from Phase 2 is set to begin in Q4 2025, with the Phase 3 expansion anticipated in Q4 2027.

The 4.1 Mtpa FS indicates a significant increase in the production of platinum, palladium, nickel, rhodium, and gold, exceeding 460,000 ounces of 3PE+Au, along with around 9,000 tonnes of nickel and 6,000 tonnes of copper. This phase is projected to yield a net present value (NPV8%) of $1.4 billion and an internal rate of return (IRR) of 20% at long-term metal prices.

According to the newly published 10.7 Mtpa PEA, which considers the Phase 3 expansion on primary Shaft #2 in 2029, annual production can potentially double to over 1 million ounces of 3PE+Au and approximately 22,000 tonnes of nickel and 13,000 tonnes of copper. This expansion could establish Platreef as one of the world’s largest producers of primary PGMs, with an NPV8% of $3.2 billion and an IRR of 25% at long-term metal prices.

The defining advantage of Platreef lies in its broad orebody, which allows for safe, mechanised, and highly productive bulk mining methods that enhance economies of scale. The orebody also contains high grades of nickel and copper as payable by-products, further reducing costs. The total cash cost for the life of mine (LOM) for the 4.1 Mtpa FS is estimated at $599 per ounce of platinum, palladium, rhodium, and gold (3PE+Au), after accounting for by-product credits from nickel and copper. This cost is expected to decrease to $511 per ounce in the 10.7 Mtpa PEA, favorably compared to the February 17, 2025 spot price of $1,205 per ounce.

Ivanhoe’s Executive Co-Chairman, Robert Friedland remarked on the results: “These studies mark the culmination of three decades of tireless efforts by thousands to discover, delineate, and build a world-class polymetallic mining complex that will last many generations.” He emphasised Platreef’s potential for further growth due to its extensive polymetallic orebody.

Ivanhoe’s President Marna Cloete added that they will leverage their knowledge and experience to develop another industry-leading tier-one asset while delivering sustained benefits across communities and stakeholders. Platreef’s indicated mineral resources contain an estimated 41.9 million ounces of PGMs plus gold, along with substantial amounts of nickel and copper, positioning it as a significant future producer for generations.