Billionaire Robert Friedland’s Ivanhoe Mines officially opened its Platreef platinum mine on October 29, 2023, with South African President Cyril Ramaphosa in attendance. This marks the culmination of a 37-year effort, positioning Platreef as “the world’s largest undeveloped precious-metals mine.” The $2 billion project aims to produce approximately 100,000 ounces of platinum group metals and gold during its initial operation phase.
Located 270 km northeast of Johannesburg, Platreef’s thick orebody (18 to 26 meters) positions it as a low-cost, multi-decade operation. Economic studies project an after-tax net present value of $1.4 billion and an internal rate of return of 20%, which could rise to $3.2 billion and 25% as operations scale. Ivanhoe and partners control 64% of the operation, while local community participation and concerns over job creation remain significant issues.
Market-wise, Ivanhoe’s shares rose 2.9% to C$12.52 following the opening. This comes amid broader market dynamics, with the World Platinum Investment Council forecasting a 20,000-ounce surplus in platinum by 2026, following a deficit this year.
