KEY POINTS
- Valterra plans trial mining at Mogalakwena later in 2026.
- A final investment decision on the Sandsloot project is expected in 2027.
- The company sees future demand for platinum-group metals in transport and AI infrastructure.
Valterra Platinum is nearing a major decision on converting parts of its Mogalakwena mine in South Africa to underground operations as declining ore grades and rising extraction costs put pressure on its open-pit mining activities.
Mogalakwena, the world’s largest platinum mine, is Valterra’s flagship asset and has more than 80 years of reserves remaining. Located between South Africa’s capital, Pretoria, and the Zimbabwean border, the mine is central to the company’s long-term production strategy.
The proposed underground development, known as the Sandsloot project, has been under evaluation for several years. However, the company is now preparing to take the project closer to implementation.
Valterra plans to begin trial mining later in 2026 and expects to make a final investment decision in 2027.
“We believe that going underground is the most cost-effective option for us,” Valterra Chief Financial Officer Sayurie Naidoo said in an interview with Bloomberg Television.
The proposed shift is intended to help the company access deeper, higher-grade ore as mining closer to the surface becomes increasingly expensive.
Sandsloot Project Could Secure Long-Term Production
Approval for the underground project would represent a significant milestone for Valterra since its separation from Anglo American in June 2025.
The development could unlock millions of ounces of higher-grade platinum-group metals (PGMs), strengthening the company’s ability to maintain production as global supplies face the prospect of declining output in the coming years.
Valterra operates three mining operations in South Africa, a country that holds nearly 80% of the world’s reserves of platinum-group metals. The proposed development at Mogalakwena is therefore important not only to Valterra but also to the country’s position in the global PGM industry.
Chief Executive Officer Craig Miller said the company had sufficient resources to sustain production over the long term.
“We have many, many decades of PGMs available just within our portfolio, so the supply is not a concern,” Miller said.
The underground project would allow Valterra to develop additional resources at one of its most important assets while adapting its mining methods to changing geological and economic conditions.
