What's Happening?
Valterra Platinum has received board approval to conduct a feasibility study for the development of the Sandsloot Underground project at the Mogalakwena opencast PGM mine in Limpopo. This initiative is part of the company's strategy to maximize value from its mining operations. The feasibility study will include trial mining over the next 18 months, with a ramp-up to Phase 1 steady state expected by the end of the decade. The prefeasibility study has shown promising results, with a reef grade of four to six grams per ton, which is higher than other mechanized underground mines in Southern Africa. The study is expected to be completed by the first half of 2027, after which an investment decision will be made.
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Why It's Important?
The development of the Sandsloot Underground project is significant for the mining industry as it represents a shift towards more efficient and value-driven mining operations. The project's success could lead to increased production rates and potentially lower costs, benefiting stakeholders and the local economy. Additionally, the project's focus on operational excellence and cost savings aligns with broader industry trends towards sustainability and efficiency. The potential for increased production and cost savings could also enhance Valterra's competitive position in the global PGM market.
What's Next?
Following the completion of the feasibility study in 2027, Valterra will make an investment decision regarding the Sandsloot project. If the project meets capital allocation criteria, it will proceed with the development of ore logistics infrastructure, potentially expanding production capacity. The company will continue to focus on operational excellence initiatives to improve productivity and cost efficiency. Stakeholders, including investors and local communities, will be closely monitoring the project's progress and its impact on the region.
