After more than three decades of exploration, planning, and development, Ivanhoe Mines (TSX: IVN, OTCQX: IVPAF) has achieved a major breakthrough at its Platreef Mine in South Africa. For the first time, mining crews have entered the Flatreef orebody, a vast, high-grade deposit containing platinum, palladium, rhodium, nickel, gold, and copper. This milestone marks a new chapter for Ivanhoe, with the Platreef Mine on track to become one of the world’s largest and lowest-cost producers of platinum group metals (PGMs) and base metals.
Ivanhoe’s journey at Platreef began over 30 years ago when its subsidiary, Ivanplats, acquired the first exploration license. The company’s persistence paid off in 2010 with the discovery of the Flatreef orebody, a thick, flat-lying deposit that stands out for its scale and grade. Since then, Ivanhoe has sunk deep shafts, drilled hundreds of thousands of meters, and constructed extensive underground infrastructure. The recent breakthrough came as mining crews accessed the orebody on the 850-meter level, with further development on other levels expected soon.
Flatreef is not just another PGM deposit. Unlike the narrow, steeply dipping reefs typical of South Africa’s Bushveld Complex, Flatreef is up to 29 meters thick and lies flat, making it ideal for modern, mechanized mining. This geometry allows for safer and more efficient extraction at a scale that few other deposits can match.
The resource numbers are impressive: Flatreef boasts 59 million ounces of precious metals in Indicated Resources and 94 million ounces in Inferred Resources (at a 1 g/t cut-off). The orebody contains significant quantities of platinum, palladium, rhodium, and gold, along with substantial nickel and copper by-products. This diversified metal basket is expected to provide strong margins, even in volatile commodity markets.
The Platreef Mine is located on the Northern Limb of the Bushveld Complex, about 11 kilometers from Mokopane and 280 kilometers northeast of Johannesburg. The project covers two contiguous properties, Turfspruit and Macalacaskop, totaling 78 square kilometers. Its proximity to Anglo American Platinum’s Mogalakwena Mine underscores the area’s geological significance.
Ivanhoe has already completed over 5.5 kilometers (3.4 miles) of underground tunnels across three levels. Shaft #1, sunk to a depth of 996 meters, is operational, while construction of Shaft #2-set to be Africa’s largest hoisting shaft, is advancing. When completed, Shaft #2 will boost the mine’s hoisting capacity to over 12 million tonnes per year.
Two recent independent studies highlight Platreef’s economic potential. The updated Feasibility Study for Phase 2 targets a processing capacity of 4.1 million tonnes per annum (Mtpa), while a Preliminary Economic Assessment (PEA) outlines a Phase 3 expansion to 10.7 Mtpa. The studies project life-of-mine cash costs as low as $511 per ounce of combined platinum, palladium, rhodium, and gold, net of nickel and copper by-product credits. For context, the current basket price for these metals is around $1,205 per ounce.
Phase 1 production is expected to begin in the fourth quarter of 2025, ramping up to about 100,000 ounces of PGMs and gold annually, plus 2,000 tonnes of nickel and 1,000 tonnes of copper. The Phase 2 expansion, scheduled for late 2027, would nearly quintuple output to over 460,000 ounces of PGMs and gold, with significant increases in nickel and copper production.
The economics are compelling: the 4.1 Mtpa Feasibility Study estimates a net present value (NPV8%) of $1.4 billion and an internal rate of return (IRR) of 20%. The 10.7 Mtpa PEA projects an NPV8% of $3.2 billion and an IRR of 25%, assuming consensus long-term metal prices.
Ivanhoe Mines owns 64% of Platreef through its subsidiary Ivanplats. A Japanese consortium led by ITOCHU Corporation holds a 10% stake, while a 26% interest is held by a Broad-Based Black Economic Empowerment (B-BBEE) vehicle, in line with South African mining regulations.
With the first ore now being mined and the concentrator set to start up later this year, Platreef is positioned to become a cornerstone asset for Ivanhoe Mines. The project’s scale, low costs, and diversified metal output make it a standout in the global mining sector. As underground development continues and future expansions come online, Platreef could shape the platinum group metals market for decades to come.
