Name of the Project 
Bengwenyama platinum group metals (PGM) project.

Location 
Bushveld Complex – greater Tubatse and Sekhukhune district municipalities, in Limpopo, South Africa, covering 5 280 ha on the farms Nooitverwacht 324 KT and Eerstegeluk 327 KT.

Project Owner/s 
Southern Palladium (70%-owned).

Project Description 
An optimised prefeasibility study (OPFS) on the advanced, shallow, high-grade PGM project proposes to unlock value through a staged production approach. The approach involves the predevelopment of blocks using off-reef twin haulages, drives and centre gulleys (raises).

The project will use underground mining techniques, specifically for the upper group two reef. 

Stage 1 proposes a production rate of 1.2-million tonnes a year from the South decline only, expanding after four years to 2.4-million tonnes a year in Stage 2 with the introduction of the North decline.

Stage 1 is expected to deliver more than 200 000 oz/y of PGMs in concentrate. Total 6E (platinum, palladium, rhodium, ruthenium, iridium and gold) ounces recovered is estimated at 2.22-million ounces over the 23-year mine life.

Stage 1 and 2 total 6E production is estimated at 7.5-million ounces over the total 33-year life-of-mine (averaging more than 400 000 oz/y from Year 4 or possibly sooner for Stage 2).

A well-established, standard processing technology has been adopted and optimised using current state-of-the-art (two-stage mill-and-float) infrastructure. 

PGM concentrates are expected to be processed at existing downstream refining facilities in South Africa. The company is also exploring off-site processing for Stage 1 to further reduce initial capital requirements.

Potential Job Creation 
Specific numbers are not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value (NPV), at an 8% discount rate, for Stage 1 and 2 of  $857-million and an internal rate of return (IRR) of 26.4%. Stage 1 has an IRR of 21.8% and an NPV of $246-million.

Capital Expenditure 
Peak funding is estimated at $279-million. Stage 1 is estimated at $219-million. Ongoing/expansion capital – Stage 1 and 2 – is estimated at $300-million.

Planned Start/End Date 
Work is advancing on the delivery of a definitive feasibility study (DFS) in 2026.

Latest Developments 
The Bengwenyama project remains on schedule while Southern Palladium awaits a mining right, with any delay in granting the right likely to affect later milestones rather than current workstreams.

The DFS is expected to be completed in the third quarter of 2026 and includes detailed tailings dam design, plant design and mine design optimisation.

Drilling programmes required for the DFS are continuing, although exploration drilling outside the mining-right area cannot proceed until the mining right is issued.

The company is also undertaking metallurgical testwork to optimise the processing circuit and improve chrome recovery, which could strengthen the project’s revenue mix.

Southern Palladium is targeting first ground on the first decline shaft in June, subject to the granting of the mining right.

Stage 1 remains focused on the South decline and a 100 000 t a month modular processing plant, while Stage 2 will add the North decline and expand plant capacity to 200 000 t a month.

The early development portion of Stage 1, including the boxcut and decline to reef, is fully funded, with Stage 2 expected to be funded from Stage 1 cash flow.

Southern Palladium plans to use a hybrid mining approach that combines mechanised development with conventional stoping. Mechanised decline development is expected to use 40 t trucks for hauling up the decline and 30 t trucks on production levels.

For stoping, the company is considering conventional breast mining and dip mining, and is leaning towards the latter because it better accommodates minor faulting. A final decision is expected during the DFS.

Key Contracts, Suppliers and Consultants
Minxcon (consultants for OPFS). 

Contact Details for Project Information 
Southern Palladium, email info@southernpalladium.com.