Base metals miner Ivanhoe Mines officially opened its platinum group metals (PGM) Platreef platinum/palladium/nickel/rhodium/gold/copper mine on November 19.

Situated on the northern limb of South Africa’s Bushveld Igneous Complex, Platreef is a Tier 1 discovery of PGMs, nickel, copper and gold.

Already, Ivanhoe is planning the mine’s expansion and ramp-up, with earthworks on the Phase 2 concentrator site, located adjacent to the Phase 1 concentrator, scheduled to commence during the first quarter of 2026.

The project is 61% owned by Ivanhoe, 26% by broad-based black economic empowerment partners and 10% by a Japanese Consortium led by ITOCHU Corporation.

During the opening ceremony, the mine’s first concentrate was produced from its Phase 1 concentrator, following South Africa President Cyril Ramaphosa pressing the button to start up the plant after undertaking the ribbon cutting ceremony.

The Platreef mine’s Phase 1 concentrator started its final stages of hot commissioning on October 29, 2025, with the first feed of platinum/palladium/nickel/rhodium/gold/copper ore.

Ivanhoe reports that project development on the Phase 2 expansion is already underway, targeting completion in the fourth quarter of 2027, to increase production to about 450 000 oz of platinum, palladium, rhodium and gold (3PE+Au).

Engineering, project delivery and operations management group DRA Global of Perth, Australia, was recently appointed as the engineering, procurement and construction management (EPCM) contractor for the mine and the 3.3-million-tonne-a-year Phase 2 concentrator. DRA Global was the EPCM contractor that delivered the construction of the Phase 1 concentrator on schedule in June 2024.

As for Phase 2 funding, the miner says negotiations are advancing well for a $700-million senior project finance facility, which it expects to be in place during the first quarter of 2026. Financing for the future Phase 3 expansion is expected to be underpinned by cash flow generated from Platreef’s phase 1 and 2 operations.

In addition, the Platreef number 2 shaft’s concrete headgear is now completed, and the expansion of the shaft, following raise boring to its initial diameter of 3.1 m, to a diameter of 10 m will start following the appointment of the contractor before year-end.

Tier 1 Ambitions

The Platreef mine is set to be one of the largest and lowest-cost producers of 3PE+Au, with nickel and copper by-products, reports Ivanhoe.

Two February 2025-announced independent studies were completed on the three-phase development of the Platreef mine, including an updated feasibility study on the Phase 2 expansion to 4.1-million tonnes a year of processing capacity, as well as a preliminary economic assessment covering a new Phase 3 expansion to 10.7-million tonnes a year of processing capacity.

The results of these studies project the Platreef mine to be the lowest-cost primary PGMs producer globally.

The Phase 2 life-of-mine total cash cost, net of nickel and copper by-product credits, for Platreef is estimated to be $599/oz of 3PE+Au.

Life-of-mine total cash costs are projected to fall further to $511/oz for 3PE+Au following a Phase 3 expansion.

The Platreef mine’s low cash costs are primarily a result of its unique thick orebody, which enables economies of scale, as well as the high grades of nickel and copper that are payable by-products. Yearly production increases almost fivefold following the Phase 2 expansion to over 460 000 oz of 3PE+Au, plus about 9 000 t of nickel and 6 000 t of copper.

The Phase 3 expansion further doubles yearly production to over one-million ounces of 3PE+Au, plus about 22 000 t of nickel and 13 000 t of copper.

With the Phase 3 expansion, Platreef is expected to “rank as one of the world’s largest primary PGM producers on a platinum-equivalent basis”, Ivanhoe states.

“This will be the largest mine in the African continent for precious metals . . . today we just have Phase 1 – the baby mine . . . in two years, the giant shaft will begin – the largest shaft in Africa,” stated Ivanhoe Mines founder and executive co-chairperson Robert Friedland at the opening.

He adds that 150 000 local black people are actually equity owners in Platreef, while 26% of the mine is operated by independent trusts on behalf of local people and over 60% of Platreef’s workers are from the local area. “All of our miners are proud South Africans,” says Friedland.

“The commencement of production at Platreef is in many ways a culmination of a long journey that began with the initial exploration more than 27 years ago,” said Ramaphosa at the opening.

“Robert said this as a baby step [for Ivanplats], but I see a giant step for the community of Mokopane and a gigantic step for our country, South Africa . . . Today, having finally reached the production phase, is a testament to decades of hard work, resilience and persistence,” he added.