Bengwenyama platinum group metals project, South
Photo by Southern Palladium
Name of the Project
Bengwenyama platinum group metals (PGMs) project.
Location
Eastern Limb of the Bushveld Complex, in Limpopo, South Africa.
Project Owner/s
Southern Palladium 70% and Nurinox 30% (Bengwenyama Community).
Project Description
A prefeasibility study (PFS) has confirmed the project as a globally significant Tier 1 PGM project and presents a commercially viable development opportunity.
The October 2024 PFS proposes that production is sourced from only the upper group two (UG2) reef, and mainly on the shallower farm, Eerstegeluk.
The life-of-mine from the UG2 reef is estimated at 29 years, with a total of about 45-million tonnes mined for an average steady-state saleable product of 400 000 oz/y PGM (6E – platinum, palladium, rhodium, ruthenium, iridium and gold).
The production profile of the project demonstrates a production range of 2.4-million tonnes a year from conventional underground stoping, with a 1 m stoping width accessed through two decline access points, the early access development and the primary access development.
The early access development will comprise a two-barrel, early access decline and a return airway, providing access to the UG2 reef. This will allow for optimal manoeuvrability of trackless equipment and extended tyre life.
The primary access development will also consist of a two-barrel decline, designated for the transport of personnel and material, and a conveyor belt for the transport of ore and waste.
The preferred mining method for underground operations is a hybrid approach optimised for narrow-reef orebodies, combining mechanised development with conventional stoping. This method enhances ore extraction while minimising dilution, supporting the safety and efficiency of mining operations.
Potential Job Creation
About 4 000 jobs will be created.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.56-billion, based on conservative long-term commodity price assumptions, and a pretax internal rate of return of about 33%.
Capital Expenditure
$385-million with a payback of about 3.5 years from first concentrate production.
Planned Start/End Date
Not disclosed.
Latest Developments
Feasibility study work is expected to start in early 2025 in parallel with project construction funding discussions with financiers, leading to the financial investment decision (FID).
FID discussions are proposed to be held in late 2025, subject to statutory approvals.
Key Contracts, Suppliers and Consultants
Scoping study:
SRK Consulting (PFS review); Minxcon (lead consultant, mining and resource estimation); Eco-Elementum (surface infrastructure, water management); ENTAIL (TSF); Bear GeoConsult (surface geotech); OHMS (mining geotech); and OMI Solutions (Independent EAP).
PFS:
OMI Solutions (environmental-assessment practitioner); Eco Elementum (air quality- and noise quality-impact assessment, water assessment, visual-impact assessment), surface water management and tailings storage facility slurry and return water system design); MVB Consulting (groundwater-impact assessment); Hydrospatial (surface water-impact assessment and stormwater management plan); Land Matters Environmental Consulting (water resource- and hydropedology-impact assessment, soil and agricultural ecosystem-impact assessment, and Phase 1 heritage-impact assessment); Field and Form Landscape Science & Trogon Biodiversity (terrestrial biodiversity-impact assessment); Ecology International (aquatic-impact assessment); Niara Environmental Consulting (socioeconomic-impact assessment); Prof Marion Bamford (desktop palaeontological-impact assessment); SA Traffic Surveys (traffic assessment); Blast Management Consulting (blasting assessment); OMI Solutions (financial provision); Paddy Keys & Associates (electrical, control and instrumentation design); Entail (tailings storage facility design); Tailex (tailings storage facility dewatering plant); Bear-GeoConsult (surface geotechnical investigation); New Resolution Geophysics (geophysical survey); Geomechanics (diamond core drilling); Aero Geomatics (drillhole collar survey); Wireline Workshop (wireline logging); ALS Minerals (assaying); ExplorMine Consultants (mineral resources estimated third-party review); Open House Management Services (geotechnical considerations and recommendations); SGS South Africa (bond ball work index testwork – comminution, initial rougher and cleaner kinetic testwork – floatation); Suntech Geomet Laboratories (milling curve testwork, rougher kinetic and locked-cycle testwork (floatation) and mineralogical analysis); and Minxcon (mineral resource estimate, environmental, social and governance aspects, mine design and scheduling, infrastructure and processing designs, operating and capital cost estimates and financial modelling).
Contact Details for Project Information
Southern Palladium, email info@southernpalladium.com.
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