South Africa has reached a major mining milestone as Ivanhoe Mines’ Platreef project in Limpopo province, one of the world’s largest precious metals operations, produced its first concentrate and began ramping up toward a planned capacity of 5 million tonnes per year.
The achievement marks the transition from construction to commercial operations and positions the project as a significant boost to the country’s mining output, export earnings, and job creation prospects.
Ivanhoe Mines confirmed that Platreef’s Phase 1 concentrator produced its first concentrate in November 2025 and is ramping toward 80% of its nameplate capacity by mid-2026.
The high-capacity Shaft #3 is scheduled to be ready for hoisting by April 2026, lifting total ore-handling capacity to about 5 million tonnes annually, according to Business Insider Africa.
Robert Friedland, Ivanhoe Mines’ Founder and Executive Co-Chairman, said, “The world is waking up to a new metals super-cycle, where precious and base metals are no longer optional, they are essential.
Prices are rising because scarcity is real and demand is relentless. This comes at a time when platinum, palladium, rhodium, copper, and nickel are being recognized by countries around the globe as strategic minerals.”
The economic implications for South Africa are considerable. Ivanhoe has secured underwriting commitments for a $700 million senior project finance facility to fund Platreef’s Phase 2 expansion, targeting completion in late 2027 and annual production of roughly 450,000 ounces of platinum, palladium, rhodium, and gold.
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Platreef sits on one of the world’s largest and thickest known ore bodies, with 59 million ounces in the indicated category and about 93 million ounces inferred.
Its unusually thick, flat-lying mineralisation allows mechanised mining, which reduces costs and improves safety compared with traditional narrow-reef South African operations.
This combination of scale and efficiency increases the likelihood that Platreef can remain profitable through commodity cycles, anchoring long-term export revenues for South Africa.
The mine also promises broad economic benefits: large-scale capital spending will support local construction, engineering, and manufacturing supply chains, while long-term production will strengthen mineral exports, support the rand, and generate sustained tax and royalty revenues.
Limpopo, one of South Africa’s less industrialised provinces, stands to gain thousands of direct and indirect jobs, infrastructure upgrades, and a deeper skills base in modern, mechanised mining.
Friedland has described Platreef as a once-in-a-generation orebody entering a new global metals super-cycle, where platinum, palladium, rhodium, copper, and nickel have become strategic resources rather than optional commodities.
For South Africa, the timing could be pivotal: a globally competitive, large-scale precious metals complex like Platreef offers a rare opportunity to revive mining-led growth, boost foreign exchange earnings, and reinforce the country’s role in the global critical minerals supply chain.
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Image Credit: Business Insider Africa
