Australian mining firm Southern Palladium has completed a pre-feasibility study for its Bengwenyama platinum group metal (PGM) project in South Africa, confirming a 14% increase in PGM reserves.
The study found a total mineral resource of 40 million ounces, up from 18.8 million ounces in July 2021.
According to a statement from Southern Palladium, “The PFS confirms that the Bengwenyama Project is a globally significant Tier 1 PGM Project and presents a commercially viable development opportunity.”
The company expects to mine approximately 45 million tons of PGMs over a 29-year period from the UG2 section alone. Based on current PGM prices, the project’s post-tax value is estimated at $1.06 billion, with a projected payback period of 3.5 years from the start of concentrate production.
Looking ahead, Southern Palladium aims to initiate a full feasibility study, launch discussions for a final investment decision, secure a mining license from South Africa’s Department of Mineral Resources & Energy and establish concentrate offtake agreements.
Value addition opportunities – including the development of an initial 100,000-ton-per-month processing plant – will also be undertaken in 2025.
