Limpopo community appeals mining licence awarded to PTM’s $600m palladium project

PLATINUM Group Metals (PTM) said a South African government decision recently granting the firm’s $617m Waterberg Project a mining licence had been appealed by the local community in the Limpopo province.

In terms of South African law, once lodged, an appeal has to be heard by the Department of Mineral Resource and Energy (DMRE) within a 130 day period (about four months). The process of appeal does not involve the courts, but the appellants are entitled to take the matter to court if the appeal is not upheld.

PTM said notice that a group of “four appellants” from the local community intended to appeal the mining licence was received by the company on March 5. It declined to provide details regarding the basis of the appeal.

“We are not in a position to make any comments apart from what is contained in the press release today,” said Kris Begic, vice-president of corporate development at the company. He added: “This matter is with the DMR and we will await their feedback”.

Said PTM in its announcement: “The company believes that all requirements specified under the Mineral and Petroleum Resources Development Act (MPRDA) have been complied with and that Minister Gwede Mantashe’s (mines and energy minister’s) office correctly issued the notice of the granting of the mining right”.

The mining right currently remains active during this period, the company said.

“Our definitive feasibility study announced in September 2019, combined with a positive outlook for palladium, highlights that the local Waterberg communities and the broader Limpopo region, in particular, would benefit from the planned investment,” it said.

The path to development for PTM’s Waterberg Project has not been smooth. Last year, Impala Platinum (Implats) passed on its option to become the project’s lead shareholder despite the project containing significant amounts of palladium.

Michael Jones, president and CEO of PTM, said however he was confident of attracting a new lead project developer for the Waterberg Project. “This is a global market. We are very confident of getting the partners together,” he said.

Implats, which will retain a 15% stake in the project following an earlier investment, indicated it would follow its rights when the development took off.

Nonetheless, the difficulty in building new projects only heightens concerns among platinum group metal buyers regarding future supplies of the metals, especially given their increasing demand amid decarbonisation of the drive-train and evolution in hydrogen technology.