en.Wedoany.com Reported - African Rainbow Minerals (ARM) held an investor conference call on July 31, disclosing progress on the development of its Bokoni Platinum Project and the restart of the Nkomati Nickel Project. CEO Phillip Tobias stated during the call that the two flagship projects are expected to unlock significant long-term value for ARM and its shareholders, enhancing the company's long-term resilience and competitiveness.
The Bokoni project is valued at R15.2 billion, including a 15% contingency, and is expected to generate a post-tax net present value of R5.9 billion with an internal rate of return of 28%. Tobias said the mine represents a high-grade growth platform that could position ARM as a globally competitive low-cost producer of platinum group metals (PGMs). Bokoni benefits from existing underground workings, a concentrator plant, a chrome recovery plant, and surface infrastructure, and will add 350,000 to 400,000 ounces of 6E PGM production annually at steady state. Measured resources stand at 31 million ounces of 6E, with a long-term mill grade of 6.1 grams per tonne, and the current 19-year mining plan consumes only 13% of the measured and indicated UG2 reef resources.
ARM Chief Operating Officer Jacques van der Bijl stated that Bokoni's planned average run-of-mine grade is higher than ARM's existing platinum operations, and its strategic appeal lies in the combination of grade, scale, and existing infrastructure. The approved development system of 180,000 tonnes per month is designed to improve fixed-cost absorption and support margin resilience. The project is not merely a new operation but a cornerstone asset capable of substantially strengthening ARM's platinum business for decades.
Nkomati was placed on care and maintenance in 2021 due to depressed nickel prices. The restart leverages existing infrastructure, established operational knowledge, and a clear route to market, advancing with relatively low capital intensity and attractive economics. Total capital expenditure amounts to R753 million, primarily for restarting mining operations and refurbishing the plant and tailings storage facility, with a target payback period of 5.3 years and an internal rate of return of 28.4%. One of Nkomati's attractions is its relatively short time to production, with the restart and plant refurbishment expected to be completed within one year and first production targeted for the second half of fiscal 2027. The project features an orebody supported by more than 30 years of operating history, with open-pit resources comprising geological zones with varying nickel and chromite characteristics. The proposed plan provides a 13-year mine life with mining operations averaging 250,000 tonnes per month, re-establishing the position of South Africa's only primary nickel producer.
Nkomati's revenue structure is diversified, with nickel contributing 49%, PGMs 29%, and other base metals 15%. Van der Bijl noted that nearly half of revenue is expected to come from commodities other than nickel. The mining plan retains flexibility to mine higher-grade ore earlier, and the processing strategy aligns with the mining strategy to optimize recovery and product value. Tobias stated that ARM manages most of its joint ventures and possesses proven hands-on operational experience. These plans are built on verified infrastructure and rigorous, independently peer-reviewed studies, and will bring employment opportunities and economic development to local communities.
