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Patrice Motsepe’s African Rainbow Minerals (ARM) plans to spend R15.2bn over the next seven years to upgrade its platinum group metal (PGM) operations, as it bets on a PGM supply deficit.The diversified miner does not expect the growth of battery electric vehicles, which do not use platinum, to hurt overall demand in the long term, as a “structural decline” in the world’s biggest PGM suppliers continues to tighten the market.More than 70% of global PGM supply, used primarily in non-electric cars’ catalytic converters, comes from South Africa.In recent years, ageing shaft infrastructure, rising power and labour costs, water shortages and price volatility have pressured local mining companies to hold back investment in new mines, leading to a steady decline in global output.As a result, the world’s mined supply of platinum declined for a third straight year in 2025, according to industry data from the World Platinum Investment Council.“Sustained underinvestment, accelerating shaft depletion in South Africa and structural decline across other producing regions are collectively expected to progressively reduce primary supply,” ARM said.“These dynamics are expected to move the platinum market into deficit, providing support for the PGM basket price and incentivising new production.”ARM’s board, which is led by mining magnate Patrice Motsepe, gave the go-ahead on Thursday for a R15.2bn expansion project aimed at adding a new concentrator plant to its Bokoni PGM mines, on the eastern limb of the Bushveld Complex in Limpopo.Bokoni’s current concentrator plant is scheduled to begin processing 60,000 tonnes of PGM per month in 2028.The new plant will add a further 120,000 tonnes by 2030. By 2032, the project is expected to add 350,000-400,000 tonnes to the group’s annual 6E PGM output.The group said the project would be funded by ARM and by cash generated at Bokoni over the coming years, as well as some external debt where required.Separately, ARM announced that it would spend R753m restarting its Nkomati nickel mine, with mining expected to recommence in October 2026. The mine, which is South Africa’s only primary nickel producer, had been on care and maintenance since 2021.The group said the operations represent a “low-risk, immediately actionable development opportunity, leveraging Nkomati’s existing mining and processing infrastructure”.Both moves are consistent with the miner’s signal to investors in recent months that it would pivot away from fossil fuels towards critical minerals, vowing in its latest annual report to cut investment in new coal mines.Business Day
