The funds will be used to accelerate the first phase of Platreef's mine development, which is expected to begin commercial production in 2024
Platreef's 103m high main Shaft 2 superimposed on the right, will be constructed from the hitch to the collar. (Credit: Ivanhoe Mines Ltd)
Canadian mining company Ivanhoe Mines has secured a $300m in stream financing for its Platreef project in Limpopo Province, South Africa.
Through its South African subsidiary Ivanplats, Ivanhoe Mines has closed stream-financing agreements with Orion Mine Finance and Nomad Royalty Company for a $200m gold-streaming facility for the Platreef project.
The company has also closed a $100m palladium- and platinum-streaming facility for the palladium-rhodium-platinum-nickel-copper-gold project.
The funds will be used to accelerate the first phase of Platreef’s mine development. It is expected to begin commercial production in 2024.
Expected to be available in the first quarter of next year, the definitive feasibility study for Platreef’s phased development plan will deliver updated production forecasts for the initial mine and subsequent expansion.
Ivanhoe Mines president Marna Cloete said: “The stream financing agreements, which represent a small fraction of Platreef’s incredible resource base, and accompanying offtake arrangements are critical milestones in the progression to commercial production for Ivanplats.”
The first phase, which will include 700,000-tonne-per-annum operation, is said to serve as a starter mine to establish a strategic production foothold on South Africa’s Bushveld PGM complex.
Under the gold stream deal, Ivanplats will offer an aggregate total of 80% of contained gold in concentrate until 350,000 ounces have been delivered. Later, the stream will be reduced to 64% of contained gold in concentrate for the remaining life of the facility.
As part of palladium and platinum stream deal, Orion Mine Finance will secure an aggregate total of 4.2% of contained palladium and platinum in concentrate until the delivery of 350,000 ounces. Later, the stream will be reduced to 2.4% for the remaining life of the facility.
Ivanplats has also entered into offtake agreements for 100% of Platreef’s phase I platinum-group-metals (PGMs) concentrate production, which is anticipated to achieve over 40,000 tonnes per annum with six payable metals such as palladium, rhodium, platinum, nickel, copper and gold.
The offtake agreements are signed with Northam Platinum and Heron Metals, a joint venture (JV) in which Trafigura holds a majority stake.
Ivanhoe Mines has a 64% stake in Ivanplats that owns the Platreef project.
The historically-disadvantaged, broad-based, black economic empowerment (B-BBEE) partners hold a 26% stake in Ivanplats, while the remaining 10% interest is owned by a Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation, and Japan Gas Corporation.