Mining right granted for PTM`s Waterberg project

The project is located on the northern limb of the Bushveld Complex in South Africa, about 85 km north of the town of Mokopane.

The Waterberg mining right has been granted in terms of Section 23(1) of the Mineral and Petroleum Resources Development Act and was issued for an initial period of 30 years. It may be renewed for further periods, each of which may not exceed 30 years at a time.

Mining will be subject to the environmental authorisation granted on November 10, 2020, water-use licences and compliance with other legislation on an ongoing basis.

PTM is the operator of the Waterberg project on behalf of Waterberg Joint Venture Resources, representing the owners of the project, being PTM; Impala Platinum; Japan Oil, Gas and Metals National Corporation; Hanwa Company and Mnombo Wethu Consultants.

The company’s near-term objectives are to establish construction funding and concentrate offtake arrangements. With the Waterberg mining right now granted, the company plans to consult with local communities and then start with pre-construction work at the project site, including geotechnical drilling, power, water and road engineering works, completion of servitudes, construction camp design and establishment, and final equipment and infrastructure engineering and procurement.

PTM president and CEO Michael Jones says the mining right provides the company the opportunity to move forward to the next steps in mine financing, construction and development.

“We see a role for platinum group metals (PGMs) to play in many aspects of the transition to new sustainable and more efficient energy technologies.”

He adds that the Waterberg mining right is both an opportunity and a responsibility to develop the mine safely for the maximum benefit of all the stakeholders. “By developing this new mine safely and efficiently, we plan to achieve the best return for shareholders, local communities and government.”

A definitive feasibility study (DFS) announced in September 2019 models the Waterberg mine as a low-cost, large-scale, shallow, decline-accessible, mechanised mine with access to palladium, platinum, rhodium and gold (4E), with 19.5-million ounces of 4E in proven and probable mineral reserves. The mine is projected to produce 420 000 oz/y of 4E at steady state.

The current basket price of Waterberg PGMs is about $2 100/oz of 4E and the Waterberg DFS estimated the life-of-mine cash cost at $640/oz of 4E.

PTM VP Mlibo Mgudlwa says the mining right approval process is thorough on environmental matters, social and labour plans and mine work programmes.

“All participants, including government, communities and interested parties, were engaged and the process was efficiently administered by the DMRE.”