South Africa is rich in platinum group metals (PGMs), copper, manganese, cobalt, and other critical minerals, making it a hub for significant growth in the mining sector.
The country’s Department of Mineral and Petroleum Resources is spearheading the development of a Critical Minerals Strategy to position South Africa as a leader in mineral extraction and beneficiation. This strategy has led to the rollout of several large-scale projects set to begin production in the coming years.
1. Sishen Ultrahigh Dense-Media Separation Project
Kumba Iron Ore, part of Anglo American, is rolling out the R11.2 billion Sishen Ultrahigh Dense-Media Separation project at Sishen Mine. This initiative will boost premium iron ore production from 18% to 55%, extending the mine’s operational life until 2044. With R1.8 billion spent on engineering and earthworks by August 2024, the project will begin construction in November 2024, with initial operations set for 2026 and full production by 2028.
2. KwaZulu Natal Titanium Beneficiation Complex
Nyanza Light Metals and the Richards Bay Industrial Development Zone are building a $4.5 billion facility in KwaZulu Natal for titanium pigment production. Supported by several financial institutions, including the African Finance Corporation and the Industrial Development Corporation, the plant will produce 80,000 tons of titanium dioxide annually, with 85% exported. The project, which will create over 3,000 jobs, is expected to begin production by 2027.
3. Steelpoortdrift Vanadium Project
In August 2024, Vanadium Resources Limited partnered with China Energy Engineering International Group to develop the Steelpoortdrift Vanadium Project. The open-pit mine in the Bushveld Complex will tap into 680 million tons of vanadium resources. Phase 1 aims to produce 1.6 million tons annually, scaling up to 3.5 million tons in Phase 2. Construction is expected to start in 2025, with operations set to begin in 2028.
4. Platreef PGM Nickel Project
Ivanhoe Mines is expanding its Bushveld Igneous Complex by developing the Turfspruit and Macalacaskop production and processing facilities. With investments of $488 million for Phase 1 and $1.5 billion for Phase 2, the project will boost PGMs production to 770,000 tons in Phase 1, reaching 5.2 million tons annually in Phase 2. Further expansions are planned for Phase 3. The concentrator for Phase 1 was commissioned in 2024, with full expansions expected by 2029.
5. Eland Mine Complex
Northam Platinum Holdings is investing R4.5 billion to revive the Eland Mine Complex in North West Province. The project aims to increase PGMs production from 100,000 ounces annually in 2025 to 180,000 ounces by 2028, also creating 2,500 long-term jobs in the process.
6. Bengwenyama PGMs Project
Southern Palladium and Nurinox’s pre-feasibility study confirmed 40 million ounces of PGMs at the Bengwenyama facility. The $408 million project will feature a concentrator with a monthly capacity of 200,000 tons and create 4,000 jobs during construction.
7. Thaba Joint Venture Project
In August 2024, Sylvania Metals and Limberg Mining announced the advancement of the Thaba Joint Venture Project, which will mine chrome tailings and run-of-mine chrome ore from Limberg Mine to produce PGMs. The R600 million project is expected to begin production in the first half of 2025.
8. Waterberg Project
Platinum Group Metals and Waterberg Joint Venture Resources released a feasibility study for the Waterberg PGMs project in Limpopo. Construction is slated to begin in December 2025, with initial production set for September 2029. The project aims to maintain steady operations until 2081.
These projects highlight South Africa’s continued push to dominate the global critical minerals market, ensuring long-term growth in the sector.