Ivanhoe rapidly scaling up output at Platreef amid ‘supercycle’ for prices
TSX-listed Ivanhoe Mines says development of its Platreef mine, in South Africa, is rapidly advancing after the first production of concentrate was achieved in November last year.
The company advises that the ramp-up of the Phase 1 concentrator on site is advancing on schedule, with the first sale of concentrate having been completed.
Additionally, Shaft 3 is on track to start operating from April, which expands the mine’s hoisting capacity to five-million tonnes a year and enables the Phase 1 and Phase 2 expansions.
The company says Platreef’s Phase 2 development is also on track, which will increase production in under 24 months to about 450 000 oz of platinum, palladium, rhodium and gold.
Ivanhoe has secured a $700-million senior project finance facility for the Phase 2 expansion of the mine.
Taking into account current record metal prices, Ivanhoe aims to drastically bring forward the date for the Phase 3 expansion.
Ivanhoe co-chairperson Robert Friedland says the development comes as the world enters a new metals “supercycle” where precious and base metals are no longer optional, but essential.
The platinum group metals basket price currently exceeds $2 500/oz, while Platreef’s by-products, copper and nickel, are also enjoying high prices.
He adds that Platreef is a one-in-a-generation orebody, which will be producing precious metals for generations. The mine has 59-million ounces in the indicated category and 94-million ounces in the inferred category.
“The Platreef mine is not a typical South African precious metals mine scratching at narrow, 1-m-thick seams, it is a geological wonder.
“The flat-lying orebody is about 25 times thicker than our industry incumbents, averaging 26 m of continuous mineralisation. This thickness means scale, which means mechanisation, and mechanisation means lower costs and safer operations,” Friedland explains.
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