Platinum Group Metals, listed on the Toronto and New York stock exchanges, is working with the South African government to assess the possibility of exporting platinum group metals (PGM) concentrate to Saudi Arabia. The company’s short-term objective is to progress the Waterberg project in Limpopo towards a decision on development and construction.
An initial trade-off study has been completed to evaluate the possibility of exporting PGM concentrate from South Africa to Saudi Arabia. A crucial requirement is obtaining a long-term permit to export unrefined precious metals in concentrate, as stated in the company’s third-quarter results report on Thursday.
The Waterberg project is designed as a fully mechanized, shallow, decline-access mine for platinum, palladium, rhodium, and gold, with by-product copper and nickel production. CEO Frank Hallam leads Platinum Group Metals in this endeavor.
The company has a cooperation agreement with Ajlan & Bros Mining and Metals. This agreement involves studying the establishment of a standalone PGM smelter and base metals refinery in Saudi Arabia. The study is divided into three phases:
- Global PGM Concentrate Market Study: This phase includes sourcing global concentrate to minimize one-project risk.
- Definitive Feasibility Study (DFS): The DFS will focus on constructing and operating the PGM smelter and base metal refining in Saudi Arabia.
- Joint Venture Option: Upon completion of the smelter DFS, there is an option to form a 50:50 joint venture, assuming the export of PGM concentrate from Waterberg to a Saudi port facility.
The Lion Battery initiative, which involves using platinum and palladium in lithium battery technologies, continues to progress. This project is in collaboration with Anglo American Platinum and Florida International University in the US.
The Battery Innovation Center in Newberry, Indiana, is driving commercialization efforts for the next-generation platinum- and palladium-based battery chemistries. The focus is on proprietary lithium-sulfur and enhanced lithium-ion technology, utilizing the catalytic properties of platinum and palladium.
The center is conducting independent small- and large-scale trials to validate Lion’s proprietary electrode composition, slurry, and films in lithium-sulfur and lithium-ion cells. The collaboration includes additional research and development to improve performance and scale-up, aiming to create prototypes for commercialization this year.
Lion’s goal is to develop batteries with specific energies 20% to 100% higher than current technologies while meeting or exceeding present cycle lives.
For the nine months ending May 31, Platinum Group Metals reported a net loss of $4.02 million, compared to $4.05 million in the same period last year. General and administrative expenses were lower at $2.57 million, while share-based compensation increased to $1.61 million.
Total expenditures on the Waterberg project during this period were $2.3 million, with total expenditures on the property since inception amounting to $88.1 million.
Platinum Group Metals’ collaboration with the South African government and the exploration of new markets like Saudi Arabia highlights its commitment to expanding its reach and enhancing its production capabilities. The potential export of PGM concentrate to Saudi Arabia could open new avenues for growth and profitability.
As the Waterberg project advances, securing the necessary permits and completing feasibility studies will be crucial steps. The company’s efforts in battery technology further underline its innovative approach and potential for significant impact in the industry.
Source: Mining Weekly
