Friedland says expansion at ‘vast’ Platreef on track

Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) says it has achieved three milestones in the stage two  expansion of its Platreef mine in South Africa, placing it on track for a near five-fold increase in production by the end of next year.

The mine, located 270 km northeast of Johannesburg, is producing about 100,000 oz. of platinum group metals (platinum, palladium, rhodium) plus gold after starting in November, Ivanhoe said Thursday. 

The current expansion aims to improve processing capacity to 450,000 oz. of PGMs plus gold and extend the mine life to 35 years. After decades of development, Ivanhoe and its partners consider Platreef to be one of the world’s largest precious metals assets. A stage three expansion is being envisioned to extend the operation by another 29 years and further increase throughput to around 10.7 million tonnes a year, which could roughly double output.

“The Platreef mine is a once-in-a-generation geological wonder . . . a discovery so vast that it will be producing precious metals for generations to come,” founder and co-chairman Robert Friedland said in the release.

Platinum prices have surged about 30% so far in 2026, pushing above $2,000 per oz., as persistent supply deficits keep the market tight, with Bank of America Securities and Standard Chartered flagging structural undersupply. Still, Commerzbank and TD Securities see the balance easing later this year as higher prices bring back supply.

Milestones 

At Platreef, a ceremony this week marked the latest development milestones. These include: the construction completion of the 4-million tonne a year shaft three; the breaking of ground for the stage two concentrator site; and the start of widening shaft two.

“These critical path items have been delivered on schedule and are key to increasing mining and development rates at Platreef,” BMO Capital Markets mining analyst Andrew Mikitchook said in a note on Thursday. “We see the project’s contribution in the company’s portfolio as well as focus of investors increasing as development progresses forward and the ramp-up continues.”

According to Ivanhoe, the installation of shaft three would increase the total available hoisting capacity five-fold to about 5 million tonnes a year. It also will enable greater flexibility in hoisting both ore and waste rock to the surface, which is severely constrained through shaft one alone.

The stage two concentrator, where crews broke ground earlier this month, is set to add 3.3 million tonnes a year of processing following its completion. Earthworks are currently underway, with completion targeted for the end of next year.

Meanwhile, shaft two is expected to be ready to hoist labour and materials by the end of 2028 and hoist ore by the end of 2029, providing support for both the steady-state operations of stage two and the future stage three expansion. Once operational, it will be the largest hoisting shaft in Africa, Ivanhoe said.

Low costs

According to a preliminary economic assessment, completion of all expansion stages would take Platreef’s annual precious metals production (PGMs plus gold) to over 1 million oz., plus about 22,000 tonnes of nickel and 13,000 tonnes of copper.

Friedland also noted the low-cost nature of the operation. “The flat-lying orebody is approximately 25 times thicker than our industry incumbents, averaging 26 metres of continuous mineralization,” he said. “Thickness means scale, which means mechanization, and mechanization means lower costs and safer operations.”

The mine is projected to be the lowest-cost primary PGM producer globally, with the stage two life-of-mine total cash cost estimated at $599 per oz., net of nickel and copper byproduct credits.

Ivanhoe Mines’ stock traded 5.2% lower on Thursday afternoon in Toronto at $11.63 apiece, as wider markets fell on Iran war concerns. The company has a market capitalization of C$16.6 billion.