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 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 only 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’s depth. Production will also be fully mechanised. Dunne 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. Of this higher production, Zondereinde is forecast to produce 330,000 to 340,000 oz.
“I have no doubt that the ultimate production profile of Zondereinde will start with a four (400,000 oz), if we take that option in around 18 months to two years’ time,” said Dunne.
“Not only does it secure the life of mine, but it also allows for an increased level of production from a very large orebody,” said Dunne. “It is a wonderful orebody 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 in August, Dunne said he was cautious on prospects for the market.
Commenting today, however, Dunne was far more optimistic.
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 (reserves) of available platinum,” said Dunne, referring to the fact that palladium was preferred by automakers for gasoline car autocatalysts for the last 10 to 15 years.
On palladium, Dunne 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.
In terms of Northam’s growth options, it could also lift processing capacity to 1.5 million ounces annually. This was owing to improvements as Zondereinde’s metallurgical facilities as well as the expansion of the Booysendal tailings facility, which had recently received permitting approval from Government. It will take 18 months to complete the Booysendal project, but when complete it would liberate 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.
