KEY POINTS
- Southern Palladium secured a 30-year Mining Right for Bengwenyama.
- The project could produce over 400,000 ounces of PGMs yearly.
- The DFS is expected to be completed in the first quarter of 2027.
Southern Palladium Limited has received approval to develop its Bengwenyama Platinum Group Metals (PGM) and chrome project in Limpopo, South Africa, marking a major step towards the development of the mine.
The South African Department of Mineral and Petroleum Resources (DMPR) formally granted the Mining Right on August 7, 2026.
The approval gives Southern Palladium and its partners, including the Bengwenyama community, the legal basis to move the project from studies and planning towards mine development and eventual production.
The Mining Right covers a 30-year period, with the company able to apply for a renewal when the initial period expires.
The approval covers the 5,280-hectare Bengwenyama Project and allows the company to mine and recover a range of minerals.
These include platinum group metals, gold, copper, chrome, cobalt, silver and nickel.
Southern Palladium owns a 70 per cent interest in the project through Miracle Upon Miracle Investments (Pty) Ltd, while the Bengwenyama Traditional Council, representing the local community, owns the remaining 30 per cent.
The ownership structure gives the Bengwenyama community a direct stake in the project and reflects the company’s partnership with the traditional leadership and residents in the area.
The Mining Right is also expected to make it easier for Southern Palladium to move ahead with further technical studies, project planning and preparations for construction.
Project moves closer to development
Southern Palladium said the approval will allow it to accelerate work towards completing its Definitive Feasibility Study (DFS).
The company is also preparing for early mine development activities, with its board approving the start of box-cut and decline development before the end of 2026.
However, the planned early works remain subject to the company obtaining the required waste management and water-use permits.
A box-cut is an early excavation made to provide access to an underground mine, while decline development involves creating an inclined underground passage that can be used to access the ore body.
The company expects these activities to represent an important transition from project studies to actual mine development.
Recent metallurgical test results have also improved the outlook for Bengwenyama. Southern Palladium said chrome recoveries from its processing tests have nearly tripled.
The improved results are expected to influence the design of the project’s processing plant and could strengthen the project’s overall production potential.
At full Stage 2 production, Bengwenyama is expected to produce more than 400,000 ounces of PGMs and about 1 million tonnes of high-grade chrome concentrate every year.
The company has extended the DFS programme by one quarter to allow its technical team to include the improved chrome recovery results in the plant design. The DFS is now expected to be completed in the first quarter of 2027.
The additional time will also allow the planned dense media separation component to be incorporated into the processing system. The Mining Right follows an optimised Pre-Feasibility Study completed in July 2025.
The study estimated an after-tax net present value of US$857 million for the project. The company said the main assumptions supporting that valuation remain unchanged.
The PFS also proposed a staged development approach designed to reduce the amount of funding required at the peak of the project’s development.
With the Mining Right now secured, Southern Palladium can focus on refining the project’s financial and technical plans before moving further into construction and production.
Despite securing the Mining Right, Southern Palladium is continuing technical work at the project.
The company is carrying out additional geotechnical and infill drilling to provide more information for mine planning and the design of the processing facilities.
The drilling and other technical studies are expected to provide further information needed to support the mine development programme.
Southern Palladium is also building an internal team that will oversee the project as it moves towards execution.
