South Africa has reached a major mining milestone after one of the world’s largest mine, operated by Ivanhoe Mines at the Platreef project in Limpopo province, produced its first concentrate and began ramping up operations toward a planned capacity of 5 million tonnes per annum (Mtpa).
- Ivanhoe Mines commenced initial concentrate production at the Platreef project in South Africa, marking a transition to commercial operations.
- The mine targets an annual capacity of 5 million tonnes, significantly enhancing the country’s mineral output and economic prospects.
- Phase 2 expansion funding has been secured, aiming for substantial platinum group metals yield by late 2027.
- Its innovative mechanized mining techniques contribute to reduced costs and higher safety standards compared to traditional methods.
The achievement marks the transition from construction to commercial operations, positioning the project as a significant boost to the country’s mining output, export earnings, and job creation prospects.
The company confirmed that Platreef’s Phase 1 concentrator produced its first concentrate in November 2025 and is ramping toward 80% of nameplate capacity by mid-2026, while 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 per year.
Ivanhoe Mines’ Founder and Executive Co-Chairman, Robert Friedland, commented:
“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.”
Beyond the technical milestones, the economic implications for South Africa are significant. Ivanhoe has signed underwriting engagements for a $700 million senior project finance facility to fund Platreef’s Phase 2 expansion, which targets completion in late 2027 and annual production of about 450,000 ounces of platinum, palladium, rhodium and gold.
That scale of output would place Platreef among the country’s most important precious-metals operations at a time when global demand for strategic minerals is accelerating due to energy transition, hydrogen technologies, emissions controls and geopolitical stockpiling.
Why Platreef could reshape South Africa’s mining-driven growth outlook
Platreef is not just another platinum group metals project; it 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 lowers costs and improves safety compared to traditional narrow-reef South African operations.
That combination of scale and efficiency increases the likelihood that Platreef can remain profitable through commodity cycles, anchoring long-term export revenues for the country.
For South Africa’s economy, the mine promises a multi-layered impact. Large-scale capital spending boosts local construction, engineering and manufacturing supply chains, while long-term production strengthens mineral exports, supports the rand, and generates sustained tax and royalty flows for the state.
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.
Ivanhoe founder Robert Friedland has framed Platreef as a once-in-a-generation orebody entering a new global metals super-cycle, where platinum, palladium, rhodium, copper and nickel are now strategic resources rather than optional commodities.
For South Africa, that timing could be pivotal: a globally competitive, large-scale precious-metals complex like Platreef offers a rare opportunity to revive mining-led growth, strengthen foreign exchange earnings, and reassert the country’s central role in the world’s critical minerals supply chain.
