Wedoany.com Report-Nov. 20, Ivanhoe Mines, founded by Robert Friedland, officially commissioned its Platreef platinum-group metals project in South Africa on Tuesday. South African President Cyril Ramaphosa attended the opening ceremony held near Mokopane, Limpopo province, as Johannesburg hosts the G20 summit this week.

From L-R: Ivanhoe founder and executive co-chair Robert Friedland, South African President Cyril Ramaphosa, Limpopo Premier Dr. Phophi Ramathuba and Ivanhoe president & CEO Marna Cloete cut the ribbon to open the Platreef mine. 

The Platreef mine, located 270 km northeast of Johannesburg, marks the culmination of development work that began over three decades ago. First ore was processed through the Phase 1 concentrator on October 29, and the first concentrate was produced during Tuesday’s event. Production ramp-up is now in progress, while detailed engineering for Phase 2 has already commenced.

“The Platreef mine will be a major contributor to South Africa’s ongoing industrial advancement,” Robert Friedland stated in the official release.

The initial phase targets annual production of approximately 100,000 ounces of platinum, palladium, rhodium, and gold, together with significant nickel and copper by-products. Current technical studies indicate an after-tax net present value (8% discount rate) of US$1.4 billion and an internal rate of return of 20% for Phase 1, improving to US$3.2 billion and 25% respectively when fully scaled.

Platreef exploits the thick Flatreef deposit, which ranges from 18 to 26 metres in true thickness and supports efficient mechanized bulk-mining methods. The operation is designed as a low-cost, long-life producer. Ownership of the operating company is structured with Ivanhoe and its partners holding 64%, South African broad-based empowerment partners owning 26%, and a Japanese consortium led by Itochu Corporation holding the remaining 10%.

Following the commissioning announcement, Ivanhoe Mines shares on the Toronto Stock Exchange rose 2.9% to C$12.52 on Wednesday, giving the company a market capitalization of C$17.8 billion.

The project employs more than 2,000 people, the majority drawn from surrounding communities. Construction and development activities have created additional economic opportunities in the region.

In market terms, the World Platinum Investment Council (WPIC) forecasts the platinum market will move from a 692,000-ounce deficit in 2025 to a modest surplus of 20,000 ounces in 2026, driven by increased recycling and slightly higher mined supply, combined with moderating demand growth. Total mined supply is expected to rise approximately 2% next year, while overall demand may decline around 6% from current levels.

On Tuesday, platinum traded near US$1,535 per ounce, representing a gain of approximately 58% compared to the same period last year. The commissioning of Platreef adds new primary production capacity at a time when the market is transitioning toward balance after several years of structural deficits.