African Rainbow Minerals (ARM) has approved the restart of two major mining projects that are expected to boost South Africa’s platinum and nickel production while creating long-term economic opportunities.
The company’s board has given the green light for the R15.2 billion Bokoni platinum project in Limpopo and approved the reopening of the Nkomati nickel mine in Mpumalanga.
The Bokoni project, located in the Bushveld Complex, will undergo a major redevelopment following the completion of a definitive feasibility study.
The brownfield expansion includes refurbishing an existing 60,000-tonne-per-month concentrator and constructing a new 120,000-tonne-per-month processing plant.
ARM expects first platinum production during the first half of the 2028 financial year, with the project reaching full commissioning in the second half of the 2030 financial year.
Once fully operational, Bokoni is expected to produce between 350,000 and 400,000 ounces of six-element platinum group metals (PGMs) annually.
According to ARM, the project is expected to deliver:
- A post-tax net present value (NPV) of R5.9 billion.
- An internal rate of return (IRR) of 28%.
- A payback period of approximately six years.
The company believes long-term demand for platinum group metals remains strong despite the growing adoption of electric vehicles.
ARM said continued industrial demand, automotive applications and declining global supply are expected to support platinum prices over the coming years.
ARM has also approved the restart of the Nkomati nickel mine, South Africa’s only primary nickel producer.
The reopening will require an estimated R753 million investment, with refurbishment work beginning this month and mining operations scheduled to restart in October.
The mine has an expected lifespan of 13 years and is forecast to produce around 56,000 tonnes of nickel concentrate annually once steady-state production is achieved.
Financial projections for the project include:
- A post-tax NPV of R764 million.
- An IRR of 28%.
- A payback period of around five years.
- Estimated annual free cash flow of R616 million at full production.
ARM said the project benefits from existing mining and processing infrastructure, making it a relatively low-risk investment.
The company also confirmed that a secured nickel concentrate offtake agreement is already in place, helping to support the mine’s long-term commercial viability.
The approval of both projects marks a significant investment in South Africa’s mining sector, with ARM positioning itself to benefit from expected future demand for platinum group metals and nickel as global industries continue to evolve.
Main Image: Mining Digital
