Impala Platinum Holdings (Implats) affirmed at the South African Investment Conference that it will commit close to R50-billion to its capital investment programme over the next five years. The investment capital will be targeted at the group’s mining and processing assets, across stay-in-business operations and new growth projects.
Implats CEO, Nico Muller said: “Southern Africa is the world’s largest source of primary platinum group metals supply, and Implats’ investment in increased beneficiation capacity and extended life-of mine development at several of our operations will position the country more competitively as a global mine-to-market PGM producer.”
Increased beneficiation facilities and capacity
Implats has committed up to R12-billion to expand group processing facilities located in Southern Africa over the next five years. This investment into its South African and Zimbabwean smelting and refining facilities will benefit the region’s production, reduce the environmental footprint of the groups’ beneficiation capacity and directly bolster and increase local beneficiation.
An initial $521-million (R8.2 billion) will be invested in the expansion of existing Zimbabwean smelting capacity and the construction of an SO2 abatement plant to mitigate air quality impacts. Access to hydropower, supplemented by electricity provided by a 35MW solar plant, which will be expanded to 185MW in a phased approach, will result in an industry-leading environmental footprint for the Zimbabwean smelting facilities.
This expansion will accommodate an additional 600 000 6E1 PGM ounces per annum, which post-smelting will be transported to Implats’ South African processing facilities for further refining and in support of local beneficiation.
Mulller said: “This investment will benefit South Africa by opening additional smelting capacity at Implats’ South African facilities to accommodate new production growth opportunities in South Africa. The extra smelting capacity will service new Implats projects and provide additional treatment capacity for third-party customer requirements. In addition, the increased concentrate production from Implats’ Zimbabwean operations will be brought to South Africa to refine at the Group’s Springs refineries, thus contributing to South Africa’s beneficiation of precious metals.”
Implats will invest another R4.4-billion into improving its South African processing facilities. Circa R500-million has already been approved to expand treatment capacity by 10% in the medium term at its base metal refining facilities in Springs. In addition, feasibility studies into further capacity expansions at both its South African base and precious metals refineries are well advanced.
Life-of-mine extensions to support enduring benefits for all stakeholders
Implats will invest more than circa R8-billion across its South African mining operations over the next few years (including attributable capital at its joint ventures). This investment will extend the life-of-mine at existing producing mines and secure meaningful employment, entrenching South Africa’s status as a stable and sustainable global PGM producer and supporting enduring benefits for all Implats’ stakeholders.
In partnership with African Rainbow Minerals, Implats has committed R5.7-billion to the construction of a new Merensky Project at the Two Rivers’ Platinum Mine. Implats has a 46% stake in Two Rivers, but 100% of the 180 000 ounces of 6E PGM project production will be treated through the Groups’ smelting and refining facilities.
A R5.1-billion investment at Implats’ Marula Mine will increase the operation’s life-of-mine by circa 17 years and expand capacity by circa 40 000 6E PGM ounces a year.
Together, these projects will increase local beneficiation by approximately 220 000 6E PGM ounces per annum from 2028 onwards.
Together with several other life-of-mine extension projects at the group’s Impala Rustenburg operation, Implats is confident in its ability to both sustain and grow total refined supply of 6E (platinum, palladium, rhodium, iridium, ruthenium and gold) PGMs from its southern African assets over the next decade.
Creating a global player on the Western Limb
Implats’ proposed acquisition of Royal Bafokeng Platinum (RBPlat) will provide compelling benefits for South Africa. The transaction will create sustainable employment in the North West province and deliver meaningful extensions to the expected life-of-mine of both Impala Rustenburg and the acquired contiguous assets of Boschkoppie and Styldrift.
“The proposed RBPlat transaction will secure a Western Limb production base to enhance and entrench the region’s position as the most significant source of global primary PGM production, and it will deliver tangible socio-economic benefits for the region, its communities, and South Africa,” said Muller.