Modern Mining July 2024

The three key PGM products of platinum, palladium and rhodium are forecast to be in a potential deficit in 2024 and 2025.

Given the sheer size of Bengwenyama, the project will employ roughly 4 000 people.

indirect jobs and generate potentially R220 and R240 billion in revenue over the 36-year life of mine, which will be good for the country, the community, the tax man and investors.” According to Baxter, “one never builds a company just to manage at the top of the cycle, but also to work through the cycle, which is why being a Tier One project is so important. “Although we have started engagements with majors on off-take agreements, we are not at the advanced level of talks as Platinum Group Metals. We are also considering every aspect of funding, including local and international interest. We are excited to be developing a project that can be a game changer for the country.” 

project for construction in 2026, said that, barring the “energy, logistics, construction mafia and crime issues, and some regulatory challenges,” South Africa has a well-developed mining landscape. The Bengwenyama project is a Tier One project with a 36-year operating life. “We have just completed our detailed scoping study and are in the process of producing our pre-feasibility and bankable feasibility studies. Bengwenyama is a project in partnership with the local community – the Bengwenyama community – which owns a 30% equity stake in the project. It is a highly attractive project that has recently gained some attention. “Once developed, the project will create 4 000 direct jobs and 8 000

non-binding indicative term sheets.” Given the poor appetite for off-take agreements, Platinum Group Metals is pursuing the “possibility of building a smelter with a new partner in Saudi Arabia”. “If you consider that the cost of running a smelter includes a 30% to 40% electricity cost and if one develops a smelter in a region where electricity costs are far lower than South Africa, one is immediately able to save between 20 and 30% on the operating cost, making the option to smelter product in Saudi Arabia and transport it back to South Africa a viable consideration. But, first prize is still to secure local off-take,” he says. Adding to the discussion, Roger Baxter, Chairman of Southern Palladium, which has lined up its Bengwenyama

JULY 2024 | www.modernminingmagazine.co.za  MODERN MINING  21