<\/p>\n
After two decades of trying, a landmark Constitutional Court victory and numerous changes in the group\u2019s corporate ownership, Southern Palladium has finally secured a 30-year mining right for its Bengwenyama project in Limpopo.<\/p>\n
At full production, the project will produce more than 400 000 ounces of platinum group metals (PGMs) and one million tonnes of high-grade chrome concentrate a year.<\/p>\n
This clears a major hurdle for the company, but it must still clear a few more \u2013 including a feasibility study, outstanding environmental permits and funding for the mine.<\/p>\n
The shares of Southern Palladium, listed on the Australian Stock Exchange and the JSE, jumped more than 25% to R22.90 on the news.<\/p>\n
It\u2019s taken nearly two decades to get here.<\/p>\n
The Bengwenyama-ya-Maswazi community, which owns the land on which the project lies, now ends up with 30% of one the most promising undeveloped projects in the Eastern Bushveld complex.<\/p>\n
The community also owns a 5.7% ownership interest indirectly in Southern Palladium through investment vehicle Nurinox.<\/p>\n
In 2006, prospecting rights were awarded to Genorah Resources, which subsequently brought in Nkwe Platinum. The community challenged that decision in the courts arguing that it was not properly consulted, and that led to the landmark Constitutional Court decision to set aside Genorah\u2019s rights.<\/p>\n
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Mining right granted<\/p>\n
Southern Palladium was established in Australia in late 2020 and acquired a 70% interest in the project-owning company, Miracle Upon Miracle Investments, in 2022. The remaining 30% is held on behalf of the Bengwenyama community.<\/p>\n
The company launched a major drilling programme, followed by scoping and pre-feasibility studies, leading to the granting of a mining right in August 2026.<\/p>\n
The right allows for the extraction of PGMs, chrome, gold, copper, nickel, cobalt and silver over 30 years, renewable thereafter.<\/p>\n
The project contains more than 40 million ounces of 3PGE (platinum, palladium, rhodium) and gold resources over the UG2 and Merensky reefs.<\/p>\n
This makes it a large \u2018Tier 1\u2019 resource in an unusually shallow deposit that could be cheaper and faster to develop than many of South Africa\u2019s ageing, deep-level PGM operations.<\/p>\n
A pre-feasibility study completed in July 2025 gave the project an estimated net present value of $857 million, with an internal rate of return of 26.4%.<\/p>\n
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The study shows a peak funding requirement of $279 million, with cash costs falling from $875\/oz in Stage 1 to about $750\/oz at Stage 2.<\/p>\n
\u2018Premier\u2019 location\u00a0<\/p>\n
\u201cThe grant of the mining right is the result of constructive and sustained engagement with the Department of Mineral and Petroleum Resources leadership, and regulators and the Bengwenyama Community and demonstrates the strength of government support and our social licence to operate,\u201d said executive chair Roger Baxter, former CEO of Minerals Council SA.<\/p>\n
\u201cThe project\u2019s location in the Bushveld Complex, the premier PGM jurisdiction globally, gives the Bengwenyama Project compelling geological, processing, smelting, refining and infrastructure advantages.<\/p>\n
\u201cWith global demand for PGMs remaining firm, driven by multiple, large-scale industrial sectors and emerging technologies such as hard drive storage devices that use PGMs, and ongoing supportive fundamentals, the project is exceptionally well-positioned to deliver strategic, long-term value for stakeholders while continuing to prioritise responsible development and meaningful benefits for our partners, the Bengwenyama community as well as the broader region.\u201d<\/p>\n
The Southern Palladium team has also been strengthened with the appointment of project director Michiel Breed, who joins in September, and veteran underground mining manager France Modau.<\/p>\n
#Southern #Palladium #mining #licence #decades<\/p>\n","protected":false},"excerpt":{"rendered":"
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