Modern Mining July 2024

a much less regulated environment for project development than South Africa. “In the DRC, one has a bit more freedom in how one executes a project. South Africa is difficult in terms of additional legislation related to local procurement and meeting BEE codes, for example, which makes the operating environment much more complex in terms of project execution.” Cloete remains upbeat on the

market of the day, and getting people interested in a project that is ten to fifteen years out, is extremely difficult, which is why we made every effort to de-risk the project by developing it in phases. “Platreef is by no means a small mine. Phase 1 will go into production next year and produce around 700 000 mtpa, after which we will speedily ramp up to Phase 2, producing more than 500 000 ounces. This will be followed by Phase 3, which will deliver close to a million ounces.” The initial capital costs for Phase 1 are estimated at $488-million, with expansion capital for Phase 2 estimated at $1.5-billion, which may be partially funded by cash flows from Phase 1 and a project financing package. According to Cloete, the phased approach allows the project developers time to better understand the nuances of the orebody as it is being developed. “As the project is being developed, we get to understand our orebody and the geotechnical engineering required. And, by using the same team and the same technologies we used to build our projects in the DRC, we can deliver the project on time and on budget.” She adds that the company learned a key lesson on the importance of a flat organisational structure. “We are not huge on bureaucracy; we have good governance and our people are empowered to make decisions. Our teams are extremely well versed in their disciplines and our core team liaises with our consultants to ensure that project execution happens the way it should.” Comparing the operating environment in South Africa to that of the DRC, where the Canadian mining company is advancing the expansion of the Kamoa-Kakula Copper Complex and the restart of the historic ultra-high-grade Kipushi zinc-copper germanium-silver mine, Cloete, says the DRC offers

Platreef underground operation.

future for PGMs, stating: “I do see a bright future for PGMs,

In the DRC, one has a bit more freedom in how one executes a project. South Africa is difficult in terms of additional legislation related to local procurement and meeting BEE codes, for example, which makes the operating environment much more

which is why we built the Platreef project. We believe it will be one of the flagship assets that will be in production within the next year.” Capital allocation

complex in terms of project execution.

Speaking on the topic of optimising capital allocation on African Rainbow Minerals (ARM) platinum’s portfolio, Thando Mkatshana, Chief Executive, ARM Platinum, says the discussion factors in “optimising capital in terms of growth, sustainability, and return on investment, amongst others”. ARM Platinum’s assets include its Modikwa Platinum Mine, the Two Rivers Platinum Mine and the Bokoni Platinum mine, acquired in 2022. “First, when considering a project within our

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