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The tabular nature of the Merensky and UG2 reefs of the Bushveld
Complex make resource delineation a rapid, uncomplicated process
plans – and it is already marginally ahead
of the schedule laid out in the prospectus
– it could deliver a PFS within 24 months,
paving the way for a mining right applica-
tion.
The company is already considering its
development options.
“We will have a flotation plant to pro-
duce concentrate on site and then look
for a third-party offtake from there,”
Odendaal said. “Impala, Anglo Platinum
and Sibanye would all buy concentrate.”
The project is also blessed with infra-
structure options and Odendaal is confi-
dent the strong ownership structure will
allow for harmonious labour relations,
which hasn’t always been the case in
South Africa’s platinum sector.
“The community will assist with labour
sourcing and labour issues,” he said.
“Many of the community have worked in
the mines before so they have the skills
anyway. I think in general, there is a more
sensible approach from both sides as
well. Unions and companies are working
together now and settling on reasonable
salary increases.”
That sense of good timing extends to
the PGM market with forecasts suggest-
ing platinum, palladium and rhodium will
all be in high demand in the coming dec-
ade.
Odendaal spent much of his career as
a PGM analyst. He sees the next 10 years
as an unprecedented time for the sector.
“With this drive towards the green
economy, PGMs have found a unique
space,” he said. “Prices can’t go back to
the pre-2019 levels because the industry
is not sustainable at those prices. A large
chunk of production was underwater at
those prices, and we haven’t seen any
expansion or exploration to change that.
“On the supply side, we expect to see
solid demand from the existing auto cata-
lyst sector until 2030 with the decline
phased until 2040 and even then, there
will still be hybrid vehicle production
which will use catalysts.
“Behind that, we have the hydrogen
fuel cell technology which demands huge
amounts of these metals and then green
hydrogen which needs palladium and irid-
ium in the electrolyser. There is certainly
going to be solid demand growth for dec-
ades to come.”
– Dominic Piper

Platinum Australia was the last ASX-listed company to mine on the Bushveld, at the
Smokey Hills mine

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