By: OrePulse

Valterra Platinum is considering using chrome-recovery technology developed by Tharisa to process fine chrome at its operations, according to a Johannesburg Stock Exchange announcement Tharisa issued on Thursday.

In the same announcement, Tharisa confirmed it had signed a long-term platinum-group-metals concentrate offtake agreement with Valterra covering 50% of the concentrate produced at Tharisa's North West mine. The agreement replaces an earlier offtake arrangement with Sibanye-Stillwater. Northam Platinum will continue to receive the remaining concentrate from the mine under an existing agreement, Tharisa said.

Tharisa's chief executive, Phoevos Pouroulis, said the pilot plant for the company's chrome-recovery technology, known as Vulcan X, is complete and testing is under way. He said the technology, which has not yet reached commercial scale, is operating successfully.

Tharisa said the technology would most likely be applied at Valterra's tailings operations. In July, Valterra chief executive Craig Miller said plans for similar technology were well advanced at the company's Mogalakwena mine, with potential also seen at its Mototolo operation.

Thursday's statement did not disclose commercial terms for a potential technology transfer between the two companies, which Tharisa said could involve a share of production.

Analyst firm Peel Hunt noted that Tharisa has a precedent for this kind of arrangement, recalling an earlier agreement under which Tharisa operated a chrome-recovery plant financed by Lonmin and earned a share of production above a base level. Peel Hunt said it expects the Valterra arrangement to be at an early stage.

The chrome-technology discussion follows a five-year PGM concentrate offtake agreement Tharisa and Valterra signed in August covering Tharisa's $545 million Karo Platinum project in Zimbabwe.