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Impala Platinum (Implats), which this week unveiled a five-year, R60bn plan to extend the life of its assets over the next five years, said conventional mining will be a “last resort”. Speaking at the group’s results presentation for the year to June 2026, when it reported exceptional profits thanks to the surge in prices for platinum group metals (PGMs), COO Patrick Morutluwa said Implats was entering a new phase to ensure production is sustainable. He said Implats would spend R60bn on life-of-mine projects, which include expanding capacity at its refineries by about 20%. It had begun studies into growth projects at Zimplats Portal 10 mining area in Zimbabwe, Styldrift 2 — which was previously owned by Royal Bafokeng Platinum (RFPlat) — and the Waterberg project joint venture.Brownfields studies were under way for the Bafokeng Rasimone, Two Rivers and Mimosa North Hill mines in North West, Limpopo and Zimbabwe, respectively. The board had approved the expansion of 14 Shaft and 20 Shaft as part of its expansion ambitions.South Africa has some of the world’s deepest mines, which are often costly and pose safety risks for miners using conventional methods such as manual drilling. The alternative is to make greater use of mechanisation and remote-controlled equipment. “As part of the study, we’re going to be testing all mining methods; for us, conventional mining will be the last resort,” Morotluwa said. ”I think it’s too early to commit to a mining method, but we want to move away from conventional as much as we can.” We’re going to be testing all mining methods; for us, conventional mining will be the last resort.— COO Patrick MorutluwaImplats has kicked off the five-year plan by allocating between R9bn and R11bn for 2027. The group’s previous capital expenditure plan was for R50bn, and began in 2020. It peaked in 2024 but then the PGMs price plummeted.For 2027, the group forecasts output of between 3.3-million and 3.5-million 6E ounces — all six elements that make up PGMs. The group lost 60,000 ounces when it closed operations as part of the safety reset at Impala Rustenburg, which suffered four fatalities during the period under review. Four more workers have since been died at the mine.“Safe production for us as Implats remains our apex priority and remains non-negotiable,” Morutluwa said.CEO Nico Muller said at the presentation that the company would explore further joint venture opportunities. The group had “myriad” internal options for expansion and diversification was not on the table.“Our current focus is proudly as a PGM producer. With all the other companies, we are exploring options in the current parts of the value chain in which we are operating and beyond. And so, to the extent that there are value-accreting opportunities, we will do so,” he said.Implats operates the Mimosa mine with Sibanye-Stillwater and the Two Rivers mine with African Rainbow Minerals.Muller described Styldrift 2, on the Merensky reef, as a high-quality untapped ore body — “the last of its kind”. The asset had been a key consideration when Implats took over RFPlat three years ago. “It is really a good option long-term for us,” he said.The soaring PGM price has been a major tailwind for platinum producers, helping Implats record earnings before interest, taxes, depreciation and amortisation of R43.6bn, compared with R9.9bn the previous year. Headline earnings came in at R22.9bn (or R25.48 a share), against R732m — an increase of about thirtyfold. Implats returned R17bn to shareholders, or 82% of adjusted free cash flow.Commenting on the results, Garth Barry, an equity analyst at Ashburton Investments, said the life-of-mine extension was a necessary undertaking. Given the strong balance sheet, investors would be monitoring the balancing act between capital reinvestment and paying dividends from excess capital.“We view domestic platinum supply as flat over the short-to-medium term, but new investment such as life extensions of existing mines is needed to maintain current production levels into the 2030s.”Business Times
