The latest independent definitive feasibility study (DFS) for the Waterberg platinum group metals (PGM) project in Limpopo is even more emphatic on the economic viability and wealth creation potential of the R18.8-billion scheme, which now has an even-higher 54-year life-of-mine (LoM) outlook from deemed kick-off in December 2025.

Located 85 km north of the town of Mokopane on the northern limb of the well- endowed Bushveld Complex, the long- awaited Waterberg PGM project is a joint venture (JV) between Toronto- and New York-listed Platinum Group Metals (37.19%), Implats (14.86%), HJ Platinum (21.95%) – made up of Japan Oil, Gas and Metals National Corporation (Jogmec) and Hanwa – and black economic empowerment partner Mnombo Wethu Consultants (26%).

Under the latest financial model, construction is deemed to begin in December 2025, with first production in September 2029.

Ramp-up to steady state will be in May 2032 and mining will be ongoing until 2081.

Platinum Group Metals has an effective 50.16% JV interest owing to its 49.9% ownership of Mnombo,

“We look forward to advancing the Waterberg project for the benefit of our partners and local communities, as well as all the people of South Africa,” Platinum Group Metals president and CEO Frank Hallam stated in a release to Engineering News & Mining Weekly.

Two thousand jobs are expected to be created during construction, with 1 425 permanent jobs as steady state mining is achieved.

Platinum Group Metals discovered this section of the Bushveld Complex in November 2011, funded by Jogmec.

In October 2017, Implats purchased a 15% interest in the Waterberg project for $30- million and acquired a right of first refusal for concentrate offtake. Hanwa retains a right to all metal marketing.

The Department of Minerals Resources and Energy granted the mining right in 2021.

The DFS, again carried out by Stantec Consulting International, DRA Projects and Fraser McGill, points to more PGM reserves, longer life, lower cost, and higher free flowing cash from the proposed decline-accessed mechanised platinum, palladium, rhodium, and gold four-element (4E) PGM operation, which has copper and nickel thrown in.

The proven and probable mineral reserve has been notched up by a fifth to 23.41-million 4E oz, plus 0.08% copper and 0.17% nickel.

“PGMs, copper and nickel play key roles in automotive emissions control and energy transition technologies, including that found in battery electric, plug-in hybrid, gasoline hybrid and hydrogen fuel cell vehicles. The Waterberg project is a long-life asset capable of profitably producing these critical metals,” said Hallam.

The LoM is extended by nine years from the earlier 45-year projection of average production in concentrate of 353 208 4E oz a year and peak annual production of 432 950 4E oz.

Net present value is R11.5-billion, cash cost an average $658/4E oz, all-in sustaining cost $761/4E oz, and free after-tax cashflow R130.59-billion.

The 32-hole infill drill programme completed in 2023 increased the confidence level of resources in shallow mine blocks; measured and indicated mineral resources rose 9.5% to 33.76-million 4E ounces at 2.5 4E g/t; and inferred mineral resources increased by 6.6% to 8.52-million 4E ounces at 2.5 4E g/t.

The improved overall position enables the delay of the development of the South Complex T-Zone infrastructure, which saves $200-million in initial capital and simplifies the mine plan, logistics, training requirements, equipment fleet and mining method.

The dry stack tailings technology modelled, which includes a dewatering plant and dry tailings handling system, cuts water needs by 36% to 2.85 megalitres a day and reduces the tailings footprint by 46% to 155 ha.

Decline tunnels, which are less costly to install and operate than vertical shafts, are the envisaged access providers to the PGM deposit, which is 140 m down at its shallowest.

More than 100 m in thickness in places, the orebody allows for bulk mining on 20 m to 40 m sublevels as well as large underground equipment and conveyors for ore and waste transport.

The mine initially accesses so-called F-Central Zone ore using a single set of twin declines to facilitate long-hole mining at a rate of 400 000 t a month.

The Central-F steady state ore-to-waste ratio is 14.8, with 47% of waste rock being used as underground backfill. The balance will be trucked or conveyed to surface.

Paste backfill will allow mining to be completed next to backfilled stopes, lowering the number of required internal pillars.

The target concentrate grade is similar to concentrate produced at other northern limb PGM mines.

The T-Zone and F-Zone are PGM-bearing sulphide deposits capable of producing a sulphide concentrate at a grade that can be processed by South African smelters, with almost zero chrome and no significant penalty elements.

As the industry in South Africa moves towards mining a larger proportion of PGMs in chromite-bearing upper group twoore, demand for sulphide sources of PGMs in Merensky and northern limb ores is increasing, the company states.

Implats holds a first right of refusal for smelter offtake and Hanwa the rights to market refined metal at market prices.

Discussions with several South African smelter operators, including Implats, are taking place with a view to establishing formal concentrate offtake arrangements.

Also being assessed is the economic feasibility of constructing a smelter and base metal refinery processing Waterberg concentrate in Saudi Arabia, which will require export approval to ship unrefined precious metals in concentrate from South Africa.