Platinum Group Metals Explores Local Smelter in South Africa Amid Beneficiation Push
Canadian miner Platinum Group Metals (PTM) is considering building a converter matte furnace in South Africa to process concentrate from its proposed Waterberg platinum mine, following pressure from the South African government to prioritize local beneficiation. This shift comes after PTM’s initial plan to export concentrate to a Saudi Arabian smelter faced resistance over national policies favoring domestic value addition.
The Waterberg project, detailed in a September 2024 Definitive Feasibility Study (DFS), envisions a 54-year mine life with annual production of 353,208 ounces of platinum group metals (PGMs) at a capital cost of $946 million. The mine is expected to create 1,425 permanent jobs and contribute significantly to South Africa’s PGM output.
PTM’s revised strategy involves constructing a matte furnace in South Africa to partially process concentrate, reducing export volumes to Saudi Arabia from 130,000 tons annually to 8,000 tons of matte. The converter matte would then undergo final refining in Saudi Arabia, where PTM’s partner Ajlan & Bros Mining plans to build a base metal refinery.
South Africa’s Department of Mineral Resources has long advocated for local beneficiation to maximize economic value from mineral resources. The government’s 2011 Beneficiation Strategy emphasizes domestic processing to boost industrialization and job creation. PTM’s pivot aligns with this policy, though securing export permits for matte remains a hurdle.
PTM continues discussions with South African smelters, including Impala Platinum (Implats), which holds a 15% stake in Waterberg and a right of first refusal on concentrate. Implats has yet to commit to refining Waterberg’s output amid financial constraints and shifting priorities.
