Name of the Project
Platreef palladium/rhodium/nickel/platinum/copper/gold project.

Location
Northern limb of the Bushveld Complex, about 11 km from Mokopane, in Limpopo, South Africa.

Project Owner/s
Ivanhoe Mines indirectly owns 64% of the Platreef project through its subsidiary, Ivanplats, and is directing all mine development work.

The South African beneficiaries of the approved broad-based, black economic-empowerment structure have a 26% stake in the Platreef project. The remaining 10% is owned by a Japanese consortium comprising Itochu Corporation; Japan Oil, Gas and Metals National Corporation; Itochu affiliate ITC Platinum Development; and Japan Gas Corporation.

Project Description
The 2022 feasibility study on the Platreef project has confirmed its potential to be the industry’s biggest and lowest-cost primary platinum group metals (PGMs) producer.

The  feasibility study is based on the detailed design and engineering scenario first presented in the November 2020 PEA, alongside the 2020 feasibility study, confirming the viability of a new phased development pathway to fast-track Platreef into production by the third quarter of 2024.

The 2022 feasibility study considers Phase 1 and Phase 2 development, including only one-third of Platreef’s indicated resources above an $80/t net smelter return cutoff.

The project has indicated mineral resources estimated at 18.9-million ounces of palladium, 18.7-million ounces of platinum, 3.1-million ounces of gold and 1.2-million ounces of rhodium (a combined 41.9-million ounces PGMs plus gold), as well as 2.4-billion pounds of nickel and 1.2-billion pounds of copper at a 2 g/t platinum, palladium and rhodium plus gold (3PE+Au) cutoff.

Platreef’s inferred mineral resources contain an additional 23.8-million ounces of palladium, 23.2-million ounces of platinum, 4.3-million ounces of gold and 1.6-million ounces of rhodium (a combined 52.8-million ounces PGMs plus gold), as well as 3.4-billion pounds of nickel and 1.78-billion pounds of copper, also at a 2 g/t 3PE+Au cutoff.

The 2022 feasibility study is based on steady-state production of 5.2-million tonnes a year, as well as an accelerated ramp-up to steady state through the earlier development of Shaft 2.

Phase 1 production at Platreef includes an initial 700 000 t/y underground mine and 770 000 t/y capacity concentrator, targeting high-grade mining areas close to the project’s recently completed Shaft 1.

Phase 1 average production is estimated at 113 000 oz/y of 3PE+Au, and five-million pounds of nickel and three-million pounds of copper.

While the 700 000 t/y initial mine is operating using Shaft 1, the sinking of the project’s second, larger Shaft 2, which will drive the Phase 2 expansion to 5.2-million tonnes a year, will progress simultaneously.

Once Shaft 2 is complete, two 2.2-million-tonne-a-year concentrator modules will be commissioned, and the initial concentrator will be ramped up to its full capacity of 770 000 t/y, increasing the steady-state production to 5.2-million tonnes a year.

Platreef’s Phase 2 expansion will result in its ranking as the world’s fifth-biggest primary PGMs mine on a palladium equivalent basis, with forecast production of 591 000 oz/y of 3PE+Au, as well as 26-million pounds of nickel and 16-million pounds of copper of copper a year.

The Platreef 2022 feasibility study reflects only the initial two phases of development for the mine. If the remainder of Platreef’s indicated resources were to be converted to reserves, it would provide an opportunity to massively expand production.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The 2022 independent feasibility estimates an after-tax net present value, at an 8% discount rate, of $1.7-billion and an internal rate of return of 18.5% at long-term consensus metal prices. Payback is estimated at 7.9 years.

Capital Expenditure
Initial capital costs for Phase 1 are estimated at $488-million.

Expansion capital for Phase 2 is estimated at $1.5-billion, which may be partially funded by cash flows from Phase 1 and a project financing package.

Planned Start/End Date
First concentrate production for Phase 1 is planned for the third quarter of 2024, with the Phase 2 expansion, based on the commissioning of Shaft 2, in 2027, followed by the commissioning of two 2.2-million-tonne-a-year concentrators in 2028 and 2029. 

Latest Developments
Detailed engineering studies are under way on the initial 770 000 t/y mine and concentrator, in parallel with the changeover of Shaft 1 into a production shaft, with expected completion in March 2022.

First delivery of the initial battery-electric underground fleet is expected imminently, and the first blast on the 950 m level is expected in April 2022. The initial underground development focus from Shaft 1 will be the on the first ventilation raise and ore passes connecting the 750 m level to the 950 m level.

Earthworks for the first concentrator are planned to begin in the second quarter of 2022, followed by civil works and the ordering of long-lead-time items in the second half of 2022. First ore feed to the concentrator is planned for the third quarter of 2024.

Key Contracts, Suppliers and Consultants
OreWin – Australia (overall report preparation and economic analysis, mineral reserve estimation and mine plan); Mine Technical Services – US (mineral resource estimation); SRK Consulting – South Africa (mine geotechnical recommendations); DRA Global – South Africa (process and infrastructure); and Golder Associates Africa – South Africa (water and tailings management).

Contact Details for Project Information
Ivanhoe Mines, tel +27 11 088 4300 or email info@ivanhoemines.com.