Modern Mining January 2023

PLATREEF PROJECT

long-lead equipment orders for the concentrator had been placed in preparation for construction activities during 2023. Together, these operational developments are aimed at building momentum towards first produc tion in 2024 and positioning Platreef as one of the world’s largest and lowest cost platinum group met als producers in the longer term. PGM market fundamentals in favour of Platreef’s development Cloete says that platinum demand growth is expected to be driven by rising consumption in cat alysts for heavy duty trucks, and increased use of platinum (in place of palladium) in autocatalyst sys tems for gasoline/petrol vehicles. The World Platinum Investment Council said in its Q3, 2022 platinum quarterly update that the mar ket is forecast to be in a deficit of 303 000 ounces in 2023 as global platinum demand is expected to increase by 19% to 7.7 million ounces while supply will increase by just 2% to 7.46 million ounces. In terms of palladium and rhodium, Johnson Matthey – the largest secondary PGM refiner in the world – reports that the palladium and rhodium markets could move back into deficit in 2022, with lower South African supplies and downside risks to Russian shipments. “Overall, we remain confident in the PGM market, while Platreef is well-positioned to be near the bot tom of the world cost curve and responsibly produce

high-quality PGMs, nickel and copper over a very long mine life,” said Cloete. With a favourable outlook for the company’s met als in future, the company’s 2022 feasibility study (FS) considered the viability of a phased develop ment pathway to fast-track Platreef into production which was based on a steady state production rate of 5.2 million tonnes per annum, as well as an accel erated ramp up to steady state through the earlier development of Shaft 2. The FS confirmed the viability of Phase 1, which comprises a stand-alone concentrator with a design capacity of 770 000 tonnes per annum, and an initial 700 000-tonne-per-annum underground mine tar geting high-grade mining areas close to Shaft 1 at an initial capital cost of $488 million. The FS also noted that while the 700 000-tonne per-annum mine is operating using Shaft 1, the sinking of the project’s second, larger, shaft (Shaft 2), that will drive the Phase 2 expansion to 5.2 million tonnes per annum, will progress at the same time. Once Shaft 2 is complete in 2027, two additional 2.2 million tonne-per-annum concentrator modules will be constructed sequentially to meet the mine ramp-up schedule and the initial concentrator will be ramped up to its full capacity of 770 000 tonnes per annum, increasing the steady-state production to 5.2 Mtpa. The second phase is estimated to have a capital cost of $1.5 billion. Development at Platreef is currently funded by Ivanplats’ $300-million stream financing comprising $200 million gold stream financing and additional $100 million palladium and platinum stream financ ing, with efforts to finalise an additional senior debt facility of up to $150 million well underway. While the stream financing is expected to provide most of the capital required to fast-track Platreef into produc tion, the expansion capital cost for Phase 2 may be partially funded by cash flows from Phase 1 and a project financing package. Leveraging sustainable technologies Aside from being well placed to supply the critical metals required for a decarbonised future, Ivanplats

Above: New electric mining equipment being hoisted down Platreef’s Shaft 1 in sections for re-assembly underground. Centre: The lateral development towards the first reef and stoping areas, as well as towards the first ventilation shaft location, is progressing well.

Right: Civil construction activities at Shaft 2 in progress.

Mine development advances with the battery electric, zero emissions fleet of vehicles.

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32  MODERN MINING  January 2023