NORTHAM Platinum has approved a R500m capital programme that will provide it with an option to expand production at its Zondereinde mine to more than 400,000 ounces a year of platinum group metals (PGM).
“What we have agreed to so far at board level is that we will progress number four shaft,” said Paul Dunne, CEO of Northam in a presentation of the miner’s interim results presentation on Friday.
The plan is to “ream”, effectively widen, an existing exploratory hole that will descend 1.4 kilometres and create “an option” to expand Zondereinde’s production, possibly from 2028 given the technical challenges, and provided it is supported by metal prices.
“It would be a world record in that sense, and that is technically challenging,” said Dunne of the project which will be fully mechanised. He added: “It will give the company an option — not to maintain 350,000 ounces, but actually to grow production above that point”. Northam adjusted production for its 2026 financial year upwards to 1.07 million oz.
“I have no doubt that the ultimate production profile of Zondereinde will start with a four, if we take that option in around 18 months to two years’ time,” said Dunne.
“It not only does it secure the life of mine, but it also allows for an increased level of production from what is a very large ore body,” said Dunne. “And it is a wonderful ore body from a geological point of view.”
The option Northam is creating at Zondereinde comes amid a much more bullish outlook on PGM markets than Dunne was prepared to give six months ago. Presenting the company’s full year results for the 2025 financial year, Dunne said he was cautious. Commenting today, however, he was more forthcoming on prospects.
Platinum was in a “fundamental persistent” 10-year deficit while the outlook for palladium had shifted favourably because the market had moved into a longer term deficit. “The carpark does not hold a large reservoir of available platinum,” said Dunne, referring to the fact palladium was preferred for autocatalysts in gasoline cars for 10 to 15 years.
Commenting on palladium, he said the scrapping by the European Union of battery electric vehicle adoption by 2035 was a massive fillip for the metal. “We believe the palladium market has moved from balance to deficit, and I now expect a better price performance compared to our earlier view,” said Dunne.
There was also an option to group increase processing capacity to 1.5 million ounces a year driven by improvements as Zondereinde’s metallurgical facilities and assisted by the expansion of the Booysendal tailings facility, which recently received permitting approval. It will take 18 months to complete the Booysendal project, effectively freeing up the mine’s milling capacity.
Zondereinde is situated on the north western limb of the bushveld near Thabazimbi while Booysendal is on the southern part of the eastern Bushveld.
