Ivanhoe announces expansion of its South Africa’s Platreef Mine as precious and base metal prices surge
Canadian mining company Ivanhoe Mines has announced that development at its Platreef Mine in South Africa’s Limpopo Province is advancing rapidly, supported by rising prices for precious and base metals.
According to Executive Co-Chair Robert Friedland and President and Chief Executive Officer Marna Cloete, the announcement follows the official opening and first production of concentrate from the Platreef Mine on November 18, 2025.
“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 identified by countries all around the globe as strategic minerals,” said Friedland.
“Into this moment steps the Platreef Mine, which has a once-in-a-generation orebody… a discovery so vast that it will be producing precious metals for generations to come, with 59 million ounces in indicated category and 94 million ounces in inferred category… plus significant nickel and copper. The Platreef Mine is not a typical South African precious metals mine scratching at narrow, one-metre-thick seams… The Platreef system is a geological wonder. The flat-lying orebody is approximately twenty-five times thicker than our industry incumbents, averaging 26 meters of continuous mineralization…. thickness means scale, which means mechanization, and mechanization means lower costs and safer operations.
“Under our current thinking, while taking into account current record metals prices, we are initiating discussions to dramatically bring forward the date for the third phase of expansion. Watch this space…”
Concentrate production
The Platreef Mine has successfully started concentrate production, with the Phase 1 concentrator ramping up as planned. During the early stages, the plant is processing development ore, which will gradually be replaced by production ore once the main shaft is fully operational. As ramp-up progresses, the concentrator is expected to reach steady operations, with detailed production guidance to be issued later.
Underground development is advancing across multiple levels, with preparations underway for the start of full production mining. Initial stoping is expected to begin soon, with ore to be brought to surface once shaft operations commence.
Construction and equipping of the main shaft are progressing well, with key components completed and remaining installations on schedule to support the transition to full hoisting and sustained production.
Platreef Mine’s hoisting capacity
The completion of Shaft #3 will boost the Platreef Mine’s hoisting capacity to about 5.0 Mtpa, allowing ore and waste to be hoisted simultaneously and supporting both Phase 1 operations and future expansions. The mine achieved its first concentrate sale in late Q4 2025.
Phase 2 development is underway, targeting completion in Q4 2027 and a major increase in platinum group metals production. DRA Global has been appointed EPCM contractor for the Phase 2 concentrator and underground infrastructure, with site earthworks set to begin soon. Shaft #2 upgrades are also progressing and will start once Shaft #3 is operational.
Financing for Phase 2 is advancing, with underwriting agreements signed for a $700 million senior project finance facility, expected to be finalized shortly. Future Phase 3 expansion is planned to be funded by cash flows from earlier phases.
Independent studies confirm Platreef’s strong economics, positioning it to become one of the world’s largest and lowest-cost producers of platinum group metals, with significant nickel and copper by-products.
Platinum and palladium prices
Rising platinum and palladium prices have significantly increased the value of the Platreef project, with Phase 2 net present value estimated at about $2.7 billion and the Phase 3 expansion exceeding $5.0 billion at current price levels.
Platinum and palladium prices are now far higher than the assumptions used in the 2025 development plan, while other metals have also strengthened.
The Flatreef orebody underpins this value uplift. It is a large, high-grade, thick, and flat-lying polymetallic deposit well suited to large-scale mechanized mining, with a balanced platinum-to-palladium ratio.
It hosts substantial indicated and inferred mineral resources, including significant gold and rhodium content, and offers strong exploration upside across a largely untested licence area, supporting long-term, multi-generational mining potential.
