Name of the Project
Waterberg platinum group metals (PGMs) project.

Location
About 85 km north of Mokopane, in Limpopo, South Africa.

Project Owner/s
Waterberg Joint Venture (JV) Resources, or Waterberg JV Co, a JV between Platinum Group Metals, or PTM (37.05%); Impala Platinum Holdings, or Implats (15%); HJ Platinum Metals Company (21.95%) comprising Japan Oil, Gas and Metals National Corporation, or Jogmec (12.195%) and Hanwa Co (9.755%); and black economic-empowerment partner Mnombo Wethu Consultants (26%). As a result of PTM's 49.90% ownership in Mnombo, the company has an effective interest in the Waterberg JV of 50.02%.

Project Description
The 2019 definitive feasibility study (DFS) mine plan envisages production of 4.8-million tonnes of ore a year and 420 000 platinum, palladium, rhodium and gold ounces a year in concentrate.

The mine will initially access the orebody using two sets of twin decline tunnels, with fully mechanised longhole stoping methods and paste backfill used for mining. Paste backfill allows for a high mining extraction ratio, as mining can be completed next to backfilled stopes without leaving internal pillars.

Maintaining safety and reliability are key mine design criteria. As a result of the scale of the orebody, bulk mining on 20 m to 40 m sublevels using large underground equipment, and conveyors for ore and waste transport, will provide high efficiency.

Potential Job Creation
The project will create about 1 100 new highly skilled jobs.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $982-million and an internal rate of return of 20.7%. This is based on the 2019 DFS prices of palladium – $1 546, platinum – $980, gold – $1 548 and rhodium – $5 036 ($/R:15).

Capital Expenditure
Capital expenditure is estimated at $874-million, including $87-million in contingencies. Peak project funding is estimated at $617-million, based on 2019 commodity prices and costs.

Latest Developments
PTM is working with the South African government to analyse the possibility of exporting PGMs concentrate.

An initial trade-off study has been completed to determine the viability of exporting the concentrate from South Africa to Saudi Arabia, and a key requirement would be to secure a long-term permit that would allow for exporting unrefined precious metals in concentrate from South Africa. 

PTM has a cooperation agreement with Ajlan & Bros Mining and Metals to study the establishment of a standalone PGM smelter and base metals refinery in Saudi Arabia, which encompasses:

• a global PGM concentrate market study, currently in progress, which includes the sourcing of global concentrate to minimise one-project risk;
• a DFS for the construction and operation of the PGM smelter and base metal refining in Saudi Arabia; and
• an option to form a 50:50 joint venture following the completion of the smelter DFS, which will assume the export of PGM concentrate from Waterberg to a port facility in Saudi Arabia.

Key Contracts, Suppliers and Consultants
Stantec Consulting International and DRA Projects SA (DFS).

Contact Details for Project Information
PTM, tel +27 11782 2186 or email info@platinumgroupmetals.net.