What's Happening?
Valterra Platinum plans to start trial mining at an underground pit at its Mogalakwena open-pit mine in South Africa by late 2026. The Mogalakwena mine, the world's largest open-pit platinum group metals mine, is developing an underground mine at its Sandsloot pit, which has higher ore grades. The company has begun a feasibility study for the project, with a targeted completion and investment decision by the first half of 2027. The move is part of Valterra's strategy to scale up demand across existing markets and create demand in new segments.
Why It's Important?
The development of the Sandsloot underground mine is crucial for Valterra Platinum as it aims to increase its concentrate production by 10% to 50%. The project reflects confidence in the future of platinum group metals, which are primarily used in autocatalysts and jewelry. Despite declining ore grades and the rise of battery electric vehicles, Valterra is focusing on scaling demand in hydrogen production and fuel-cell electric vehicles. The trial mining initiative is a strategic move to maintain production levels and adapt to changing market demands.
What's Next?
Valterra plans to ramp up operations to a 3.6 to 4.5 million tonne per year operation beyond 2030, contingent on meeting capital allocation targets. The company is also exploring new market segments to sustain demand for platinum group metals. The feasibility study's completion and investment decision in 2027 will determine the project's future trajectory and its impact on Valterra's production capabilities.
