VALTERRA Platinum will launch trial mining operations at its flagship Mogalakwena open-pit complex in late 2026, signalling confidence in platinum group metals (PGMs) amid a recent recovery in prices, said Reuters.
The South African miner plans to extract higher-grade ore from the underground Sandsloot pit development at the world’s largest open-pit PGM operation in Limpopo province. The move addresses declining ore quality that has plagued the sector for years, forcing companies into costlier and riskier deep mining operations.
Project General Manager Stephan Nothnagel told reporters in a media visit last week the firm could “truck the first ore out of the top part of the ore body” if capital allocation targets are met. The operation could potentially scale to 3.6 to 4.5 million tons annually beyond 2030.
Mogalakwena, comprising five open pits north of Johannesburg, generates approximately half of Valterra’s PGM output, making it the company’s most valuable asset. The underground expansion represents a significant vote of confidence in metals primarily used for vehicle catalysts and jewellery production, said Reuters.
The platinum industry has endured substantial challenges, with prices declining over two years as electric vehicle adoption reduces demand for autocatalysts. Miners have responded by curtailing supply, yet Valterra remains optimistic about market fundamentals.
The company completed feasibility studies in July, targeting an investment decision by early 2027. If successful, the underground development could boost Mogalakwena’s concentrate production by 10% to 50%.
Executives Martin Poggiolini and Agit Singh highlighted emerging opportunities in hydrogen production and fuel-cell vehicles, expressing confidence in both short-term and long-term sector prospects despite current market turbulence.
