IMPALA Platinum (Implats) said the improved market for platinum group metals will support extension projects and prompt the company to explore cross-boundary cooperation with rival miners, especially on the Eastern limb of the Bushveld Complex.
CEO Nico Muller said elevated pricing for metals was unlikely to solve the supply shortfall, especially in platinum. As a result, the period of “very long winters and very short summers” in the PGM market was over in favour of stronger prices. Based on this there was opportunity to address supply by dropping farm boundaries.
“I think the current supportive environment, not only for PGMs but including PGMs, is going to last longer than our initial expectation of 18 months,” said Muller addressing media following the publication of the firm’s interim numbers on Thursday. “I think we are looking at at least three to five years,” he added.
Muller identified properites north of the Dwarsrivier Fault on the Eastern Bushveld where “there are some cross-border collaboration opportunities”. In terms of geographical footprint, this would include the Modikwa, Marula, Twickenam, and Bokoni mines as well as some undeveloped prospecting projects.
“If you re-imagined the Eastern Limb, very few of the assets north of the Dwarsrivier Fault have ever been economically attractive.
“But I think if we were to combine assets into a larger vehicle, as an example, there could be upside for the Eastern Limb which does have a very healthy long-term resource base. So I think that would be the focus for the next year or two,” said Muller.
He also called for sharing of processing facilities as supply of primary production declined. “Processing capacity will become available. I think that can be put to good use through the sharing of processing infrastructure,” he said.
“I do think it is really critical for Southern Africa to protect beneficiation in-country, and the fact that processing capacity will become available will improve overall infrastructure utilisation efficiency.”
Implats said in its interim results that it was progressing studies for the restart of life of mine extension projects at Rustenburg Mines, its largest division, specifically at 14, 20 and BRPM North Shafts. Phase 4 of the Impala Refineries final metals project is also advanced.
“Looking at the suite of projects that we have, I think we possibly have the ability to extend the current approximately one million ounce production profile by perhaps a year or two,” said Muller in reference to group production.
Implats investing in Karo Platinum?
However, there was little scope for greenfields projects because long-term demand for the entire suite of PGMs, platinum excepted, could not support capital of this scale. However, Muller did raise the possibility of investing in projects owned by other miners.
“We do see only two new projects that are securing funding: one is Ivanplats, and I think Karo is making some progress on the Great Dyke. Again, I think there is some opportunity for companies like ourselves to participate in one form or another,” he said.
The $380m Karo project, which is being developed by Tharisa, is scoped to produce 400,000 oz a year and is due to commission in 2027 once a funding plan and fiscal agreement with the Zimbabwean government has been finalised.
