Modern Mining September 2025

Stage 2 of the project will deliver production of over 400 koz per year for an aggregate mine life of over 20 years from year four onwards. Cash costs for both options lie within the lowest cost quartile for the global PGM industry. Stage 1 cash costs are estimated at $875/oz reducing to $750/oz for Stage 2. Unpacking project development The original PFS outlined a mining strategy for the UG2 reef using only underground mining techniques, with a focus on efficiently exploiting the shallow eastern portion of the orebody. This approach emphasised the rapid commencement of full-capacity production of 2.4 mtpa through two declines — the North Decline and the South Decline. The Optimised Prefeasibility Study (OPFS), however, considers a Stage 1 option where production begins at 1.2 mtpa from the South Decline only, increasing to 2.4 mtpa in Stage 2 with the introduction of the North Decline. Stage 1 updates exclude infrastructure related to the North decline, such as box cuts, conveyors, ventilation, and dewatering systems, with associated reductions in power, water, and compressed air needs. Furthermore, the TSF has been downsized and staged, with only the first two stages required and the dewatering plant resized accordingly. The company is also exploring off-site processing for Stage 1, which will eliminate the requirement for building a Stage 1 plant, deferring tailings storage and significantly reducing water and power demand. It will also reduce, considerably, the Stage 1 funding requirement. According to Odendaal, the South Decline provides faster access to the orebody, allowing earlier extraction and an optimised development timeline. This supports a faster production ramp-up and better use of infrastructure and resources. Stage 2, which includes the North Decline and a processing plant, will see the reinstatement and expansion of mining, processing, and support infrastructure, including roads, power and water supply, TSF expansion, slurry systems, and a tailings dewatering plant, all scaled to support full production. Mining begins with the pre-development of blocks using off reef twin haulages, drives, and centre gulleys (raises), enabling the advancement of infrastructure. “The revised PFS comes in at drastically reduced costs and Stage 1 development of the South Decline, allowing for quick and easy access to the reef at 50 metres. We have a modular plant option of 100 000 tons per month and the option to accelerate our production and reduce our costs. Once Stage 1 is complete, the plan is to establish the North Decline and build up to 200 000 tons per month.” Timeline to production “Developing Bengwenyama has been a dream for many years. We started this project in 2006, and it has taken more than two decades to advance it to this stage. Now, for the first time, we can see a mine emerging. The optimised PFS was for me the last hurdle to project development. From a technical point of view, we have proven that this is a fantastic project.” Southern Palladium will break ground on the Bengwenyama Project in 2027 with the project anticipated to take two to two and-a-half years to construct. Following the completion of the optimised PFS, the company

Bengwenyama is situated in an area with good logistical infrastructure, including a tared road, a water pipeline project and two power substations.

The Bengwenyama project will follow a phased development approach to mitigate risk and enhance understanding of the geology and technical parameters.

has been working on the DFS, targeting completion by mid 2026. Coupled with this, Southern Palladium is engaged in further metallurgical assays, geotechnical work and infill resource drilling in the area of access. Apart from shallow drilling to attain core samples of the reef, other outstanding elements include final detailed assays and due technical studies related to the hanging roof. “It is important to note that the hanging roof is solid and

SEPTEMBER 2025 | www.modernminingmagazine.co.za  MODERN MINING  19