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Highlights
- Eastern Platinum Limited is actively commissioning its PGM processing plant at the Crocodile River Mine in South Africa's Bushveld Complex.
- The plant has processed approximately 22,000 tons of UG2 ore in September, yielding around 1,300 ounces of platinum group metals.
- Production is set to ramp up significantly, targeting 40,000 tons of ROM ore monthly by the end of 2024 and 70,000 tons by the end of 2025.
Eastern Platinum Limited (TSX:ELR) (JSE: EPS), widely known as Eastplats, is making significant strides in the commissioning of its platinum group metals (PGM) processing plant at the flagship Crocodile River Mine (CRM). Located in the heart of South Africa's Bushveld Complex—home to approximately 80% of the world's PGM-bearing ore—this development represents a pivotal moment for the company.
The ongoing commissioning of the processing plant, referred to as Circuit B, has already shown promising results. As of October 1, 2024, a total of 75,000 tons of Run-of-Mine (ROM) UG2 ore has been blasted, with approximately 22,000 tons processed in September alone. This initial processing generated a concentrate containing about 1,300 ounces of PGM (including platinum, palladium, rhodium, ruthenium, iridium, and gold) which was delivered to Impala Platinum Limited under an existing offtake agreement with Eastplats' subsidiary, Barplats Mines Limited. Looking ahead, the company anticipates processing an additional 30,000 tons of ROM ore in October, expecting to yield between 2,000 and 2,500 ounces of PGM 6E metals for delivery to Impala.
Eastplats is on track for a significant ramp-up in production. The Zandfontein underground operations are projected to produce 40,000 tons of ROM ore monthly by the end of 2024, with plans to increase this to 70,000 tons per month by the end of 2025. The processing capacity of Circuit B is robust, with an annual ROM ore processing capacity of 1,000,000 tons. In total, up to 185,000 tons of underground ROM ore from Zandfontein is expected to be blasted and processed in 2024, marking a strong growth trajectory for the company.
Wanjin Yang, CEO and President of Eastplats, expressed enthusiasm about the commissioning milestone, stating, "This operational milestone marks our transition from a tailings storage facility chrome recovery operation to a growing PGM concentrate and metallurgical chrome concentrate producer." Yang highlighted the excitement surrounding the potential for increased revenues from both PGM and metallurgical chrome as ROM ore tonnages ramp up.
In addition to its PGM initiatives, Eastplats will continue processing historical tailings to recover chrome as part of its chrome retreatment project at the CRM. However, this project is expected to wind down in early 2025. Following its conclusion, the company plans to complete the second phase of its tailings storage facility program, which aims to recover both chrome and PGMs from the tailings generated by the newly operational Zandfontein underground.
By 2026, Eastplats anticipates that PGM revenue will account for 65% or more of its total revenue, underscoring the company's commitment to transitioning into a prominent player in the PGM market.
