African Rainbow Minerals is committing nearly $1 billion to revive two previously troubled South African mines, making a long-term bet on platinum and nickel as improving metal prices and tightening supplies reshape the outlook for both commodities.
The diversified miner, founded and chaired by South African billionaire Patrice Motsepe, has approved a phased $927 million (R15.2 billion) redevelopment of Bokoni Platinum Mines and a separate $46 million (R753 million) restart of the Nkomati nickel mine.
The investments represent more than the reopening of two mines. They amount to a vote of confidence in commodities whose prospects have been questioned by weak prices, rising production costs and the global transition towards battery-powered vehicles.
ARM expects Bokoni to become a major new source of platinum group metals, while Nkomati will restore South Africa’s position as a primary nickel producer and supply concentrate to Europe under a multiyear agreement with Sweden’s Boliden.
Platinum bet
