Ivanhoe Mines announces update on Platreef, the world’s largest precious metals mine under development
January 12, 2026
Ivanhoe Mines announces update on Platreef, the world’s
largest precious metals mine under development
■
Ramp up of Phase 1 concentrator advancing to plan; first sale
of concentrate completed
■
Shaft #3 on track for April 2026; five-fold increase in hoisting
capacity to 5 million tonnes per annum supporting
Phase 1 and Phase 2 expansion
■
Phase 2 on track, increasing production in under 24 months to
approximately 450,000 ounces of platinum, palladium, rhodium
and gold
■
$700 million senior project finance facility for Phase 2
expansion signed
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Platreef metals basket price exceeds $2,500 per ounce of
platinum, palladium, rhodium and gold, plus by-product credits
from record copper and resurgent nickel prices
■
Flatreef discovery contains 59 million ounces of precious metals
in Indicated Resources and 93 million ounces in Inferred Mineral
Resources at 1 gram per tonne cut-off
MOKOPANE, SOUTH AFRICA – Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF)
Executive Co-Chair Robert Friedland and President and Chief Executive Officer
Marna Cloete announced today that following the official opening and first
production of concentrate from the Platreef Mine, in Limpopo Province, South
Africa on November 18, 2025, the development of the Platreef mine continues to
rapidly advance as precious and base metals reach new highs.
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Ivanhoe Mines’ Founder and Executive Co-Chairman, Robert Friedland,
commented:
“The world is waking up to a new metals super-cycle, where precious and base
metals are no longer optional, they are essential. Prices are rising because
scarcity is real and demand is relentless... This comes at a time when platinum,
palladium, rhodium, copper and nickel are identified by countries all around the
globe as strategic minerals.
“Into this moment steps the Platreef Mine, which has a once-in-a-generation
orebody… a discovery so vast that it will be producing precious metals for
generations to come, with 59 million ounces in indicated category and 94 million
ounces in inferred category… plus significant nickel and copper. The Platreef
Mine is not a typical South African precious metals mine scratching at narrow,
one-metre-thick seams... The Platreef system is a geological wonder. The flat-
lying orebody is approximately twenty-five times thicker than our industry
incumbents, averaging 26 meters of continuous mineralization…. thickness
means scale, which means mechanization, and mechanization means lower costs
and safer operations.
“Under our current thinking, while taking into account current record metals
prices, we are initiating discussions to dramatically bring forward the date for the
third phase of expansion. Watch this space...”
Watch a timeline video from 1998 to today, showcasing the
development of the Platreef Mine:
https://vimeo.com/1153360697/70ceb15e6f?share=copy
The Platreef Mine’s Phase 1 concentrator produced the first batch of platinum-
palladium-nickel-rhodium-gold-copper concentrate on November 18, 2025, during
the official opening ceremony. Since then, the concentrator continues to ramp up
in line with expectations. As previously guided, lower-grade development ore will
continue to be fed into the concentrator during the initial ramp-up stages until
Shaft #3 is ready to hoist in early Q2 2026, at which point feed will be increasingly
replaced by production ore. From early Q2 2026, the concentrator is expected to
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steadily ramp-up, consistently achieving 80% of nameplate capacity by mid-year.
The 2026 production guidance will be provided at a later date, as the concentrator
ramp-up is more advanced.
Since late Q4 2025, underground development is also advancing on the 750-metre
level, as well as on the 850-metre level, where the Flatreef orebody was first
intersected in May 2025. Blasting of the first long-hole stoping blocks (production
mining) on the Platreef Mine’s 850-metre level is expected imminently. Ore tonnes
from the long-hole stopes will only be hoisted to surface in early Q2 2026 once
Shaft #3 is ready to hoist.
The completion of Shaft #3 is on track and is expected to be ready-to-hoist from
April 2026. Barrel equipping of the shaft and construction of the underground
loading box were both recently completed. The remaining workstreams of
installing the permanent headframe, and completing the installation of the
underground conveyors and loading infrastructure, are on track to be completed
by the end of the first quarter.
Aerial view of the surface hoisting infrastructure for Shaft #3. The left-hand
headframe (centre of picture) is the temporary headframe that was
originally erected for the sinking and equipping of Shaft #3. This headframe
will be replaced by the permanent headframe (right of picture) from late
January 2026. Once operational, Shaft #3 will increase total available
hoisting capacity from 0.8 Mtpa to approximately 5.0 Mtpa.
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The completion of Shaft #3 will increase the Platreef Mine’s available hoisting
capacity by approximately five times to 5.0 million tonnes per annum (Mtpa). The
new shaft will enable greater flexibility of hoisting to surface both ore and waste
from the mine. Therefore, waste generated from the widening of Shaft #2, which is
expected to commence in April 2026, as well as waste development required in
preparation for the start of the Phase 2 expansion in Q4 2027, can be hoisted
concurrently with ore for the Phase 1 concentrator. This was not possible with
Shaft #1 alone.
In addition, the first sale of concentrate from the Phase 1 concentrator to
Northam Platinum Ltd, of Johannesburg, South Africa, took place in late Q4 2025.
Bulk transport trucks arriving at the Platreef Mine for the first sale of
concentrate. Revenue from the sale of the concentrate is provisionally
recognized as the trucks leave the mine gate.
Project development on Phase 2 expansion is already underway,
targeting completion in Q4 2027, to increase production to
approximately 450,000 ounces of platinum, palladium, rhodium and
gold
The Ivanplats’ project team has commenced work on Phase 2 development, with
the concentrator expansion targeted for completion in Q4 2027. DRA Global of
Perth, Australia, was recently appointed as the engineering, procurement and
construction management (EPCM) contractor for the Phase 2 underground
infrastructure and the 3.3-million-tonne-per-annum Phase 2 concentrator. DRA
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Global was the EPCM contractor that delivered the Phase 1 concentrator on
schedule in June 2024. Earthworks on the Phase 2 concentrator site, located
adjacent to the Phase 1 concentrator, are scheduled to commence in the coming
weeks.
In addition, Shaft #2’s concrete headgear is now complete, and the expansion of
the shaft from an initial diameter of 3.1 metres to a diameter of 10 metres, will
commence in early Q2 2026, once Shaft #3 is ready to hoist. The appointment of
the contractor that will be widening the shaft, called slyping and lining, was
placed in late Q4 2025. Raise boring of Shaft #2 to the initial diameter of 3.1-
metres was completed in Q4 2024.
Underwriting engagements signed for $700 million project finance
facility for Platreef’s Phase 2 expansion
In December 2023, Ivanplats closed a senior debt facility with Societe Generale
and Nedbank Limited to fund Phase 1 construction. A total of $100 million was
drawn from the Phase 1 facility.
Following completion of the updated Phase 2 feasibility study, as announced on
February 18, 2025, Ivanhoe Mines has been focused on arranging an enlarged
project finance package to cover the majority of the capital requirements for the
Phase 2 expansion.
In late Q4 2025, credit approvals were received and underwriting engagements
were signed with Societe Generale, Absa Bank Limited and Nedbank Limited for
the $700 million Phase 2 senior project finance package. Signing of the Phase 2
senior project finance facilities is expected in the coming weeks. The Phase 2
facility will amend and upsize the Phase 1 facility, resulting in approximately $600
million of additional capital.
Financing for the future Phase 3 expansion is expected to be underpinned by
cash flow generated from Platreef’s Phase 1 and 2 operations.
The Platreef Mine is set to be one of the largest and lowest-cost
producers of platinum, palladium, rhodium, and gold, with nickel and
copper by-products.
On February 18, 2025, two independent studies were completed on the three-
phase development of the Platreef Mine. This included an updated Feasibility
Study on the Phase 2 expansion to 4.1 Mtpa of processing capacity, as well as a
Preliminary Economic Assessment covering a new Phase 3 expansion to 10.7
Mtpa of processing capacity. The excellent results from both studies reinforce the
multi-generational Platreef Mine's industry-leading margins.
The Platreef Mine is projected to be the lowest-cost primary platinum-group-
metals producer globally. The Phase 2 life-of-mine total cash cost is estimated to
be $599 per ounce of platinum, palladium, rhodium and gold (3PE+Au), net of
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nickel and copper by-product credits. Life-of-mine total cash costs are projected
to fall further to $511 per ounce of 3PE+Au following the Phase 3 expansion. This
compares very favourably with a basket spot price of approximately $2,500 per
ounce of 3PE+Au, as at January 12, 2026. The Platreef Mine’s low cash costs are
primarily due to its unique thick orebody, which enables economies of scale, as
well as the high grades of nickel and copper that are payable by-products.
The Phase 2 expansion is expected to increase annualized production by almost
five-fold to over 460,000 ounces of 3PE+Au, plus approximately 9,000 tonnes of
nickel and 6,000 tonnes of copper. The Phase 3 expansion further doubles
annualized production to over 1 million ounces of 3PE+Au, plus approximately
22,000 tonnes of nickel and 13,000 tonnes of copper. The Phase 3 expansion is
expected to rank the Platreef Mine as one of the world’s largest primary platinum
group metal producers on a platinum-equivalent basis.
Figure 1: Phased development schematic of the Platreef Mine, showing the
annualized mining rate over the life of mine.
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Aerial view of the Platreef Mine site, showing the current Phase 1
concentrator, shaft headframes and associated surface infrastructure, as
well as an outline of the locations for the future Phase 2 and 3
concentrators.
Significant increase in platinum and palladium prices boosts project
value to well over $5.0 billion
The long-term price assumptions for platinum and palladium in the 2025 Platreef
Integrated Development Plan (2025 IDP), filed on March 31, 2025, were $1,200 and
$1,130 per ounce, respectively. In the 2025 IDP, platinum and palladium together
accounted for approximately 60% of total project revenue, with the remaining 40%
from nickel, rhodium, copper, and gold.
Following the recent rise in precious metals prices, the current spot prices for
platinum and palladium are approximately 96% and 67% higher than those used
in the 2025 IDP, respectively. In addition, gold, rhodium, gold, copper and nickel
prices are also higher by approximately 110%, 90%, 40% and 5%, respectively.
In reference to the sensitivity tables in the 2025 IDP, and accounting for only the
increase in platinum and palladium prices at current prices, the net present value
(NPV8%) of the Phase 2 feasibility study at current spot prices is over 70% higher,
at approximately $2.7 billion. In addition, the sensitivity tables in the Preliminary
Economic Assessment (PEA) for the Phase 3 expansion indicate that the NPV8%
increases by approximately 60%, to over $5.0 billion. This is based on platinum
and palladium price assumptions of $1,550 and $1,700 per ounce, respectively.
NPV8% assumptions for platinum in the 2025 IDP don’t exceed $1,550 per ounce.
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Figure 2. 12-month chart of Platreef Mine’s metal basket price, including
metal basket price assumptions used in the 2025 IDP. Current spot prices
for platinum, palladium, rhodium and gold are 87% that higher than those
used in the 2025 IDP less than 12 months ago.
Overlooking the Phase 1 concentrator. The Phase 1 concentrator produced
first concentrate in November 2025 and is ramping up to achieve
commercial production by mid-2026.