Australian PGM company Southern Palladium has revealed that it might institute a staged development for its 70%-owned Bengwenyama project, located on the Eastern Limb of the Bushveld Complex in South Africa. The staged approach improves the company’s ability to further de-risk key geological, technical, and operational assumptions.

A prefeasibility study announced in October 2024 confirmed highly attractive economics and supported the advancement of the project. Stage 1 of the project, designed to deliver over 200koz per year of PGMs in concentrate, will provide valuable insights into ground conditions and metallurgical performance, supporting more informed mine planning and optimised design for subsequent stages. It also allows the company to align project development with infrastructure roll-out and community readiness, ensuring a more sustainable and inclusive growth trajectory.

ALSO READ: EA approval process for Southern Palladium’s Bengwenyama completed

Stage 2 is designed to deliver PGM production at levels forecast in the study, averaging over 400koz per year for an aggregate mine life of over 20 years from the fourth year or possibly sooner. Cash costs for both options are attractive and lie within the lowest cost quartile for the global PGM industry.

“A staged development provides a pragmatic and value-driven path forward. While the full-scale design outlined in the original PFS remains technically and economically compelling, the substantial upfront capital required could pose a funding challenge. A staged development approach for Bengwenyama, reducing peak funding requirements by US$173 million (38%) to US$279 million compared to the original PFS, presents a highly attractive option for shareholders,” says managing director, Johan Odendaal.