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Shares in Southern Palladium rose more than 20% in early trade on Tuesday after the group announced it had been granted a mining right for its Bengwenyama PGM-Chrome project in the Bushveld complex.“The granting of the mining right by the department of mineral and petroleum resources marks the achievement of a substantial regulatory milestone in the development of Southern Palladium’s world-class tier-1 Bengwenyama platinum group metals (PGM)-chrome project,” it said.The mining right has been granted for an initial period of 30 years, after which the company is entitled to apply for a renewal.Recent definitive feasibility study (DFS) metallurgical results have reinforced Bengwenyama’s position as a world-class tier 1 PGM project, with the added benefit of significant high-grade chrome co-production, it said.At full steady state stage 2 production, the project will produce more than 400,000 ounces of PGMs and 1-million tons of high-grade chrome concentrate a year, it said.With the mining right in hand, we can continue to progress the DFS completion, fast-track the project execution plan and operational readiness activities to mobilise contractors for decline and box-cut works and start early works at the project— Johan Odendaal, Southern Palladium MDThe mining right grant opens the way for Southern Palladium and its partners, the Bengwenyama community, to proceed to mine development at the project.The commencement of early box-cut and decline development is expected to start before the end of this year and the DFS works programme is expected to be delivered in the first quarter of 2027. MD Johan Odendaal said securing the mining right is a pivotal catalyst for driving the Bengwenyama project from studies to execution. “With the mining right in hand, we can continue to progress the DFS completion, fast-track the project execution plan and operational readiness activities to mobilise contractors for decline and box-cut works and start early works at the project,” he said.Chair Roger Baxter said the project’s location in the Bushveld complex, the premier PGM jurisdiction globally, gives the Bengwenyama project compelling geological, processing, smelting, refining and infrastructure advantages. At 9.30am on the JSE, Southern Palladium’s shares were up 22.2% at R22.Business Day
