By: African mining market

According to the terms of the MoU, MISA will offer strategic guidance and study potential financial support to the proposed PGM Smelter and BMR to be located in Saudi Arabia and the Waterberg Project located in South Africa. The establishment of a PGM Smelter and BMR in Saudi Arabia are being considered due to their potential to support the Kingdom of Saudi Arabia’s Vision 2030 initiative to develop the mining and minerals industry to become the third pillar of the Kingdom’s gross domestic product.

The MoU with MISA aligns with initiatives already underway between Ajlan and Platinum Group, who together entered a Cooperation Agreement in December 2023 to study the establishment of a PGM Smelter and BMR in Saudi Arabia. The Cooperation Agreement encompasses three phases: a global PGM concentrate market study, a Definitive Feasibility Study for the construction and operation of PGM Smelter and BMR in Saudi Arabia, and an option to form an incorporated 50:50 joint venture following the completion of the Smelter DFS. The Smelter DFS will assume the export of PGM concentrate from the Waterberg Project in South Africa to a port facility in Saudi Arabia.

The Market Study was completed recently by a globally recognized consulting group specializing in PGMs and associated base metal by-products. The objective of the study was to identify potential sources of PGM bearing concentrate or material that could augment the processing of Waterberg PGM concentrate and reduce the risk of operations being dependent upon concentrate from one source. The Market Study concluded that end of life auto catalysts and petrochemical catalysts, sourced from the Gulf Region, could augment the operation of a Waterberg focused PGM Smelter and BMR in Saudi Arabia. Other sources of mined PGM concentrate from Southern Africa, if available, may also be considered over the longer term.

A key requirement before a Waterberg focused PGM Smelter and BMR can be constructed and operated in Saudi Arabia will be a long-term approval for the export of unrefined precious metals in concentrate from South Africa. Platinum Group has been working with the Government of South Africa to identify local beneficiation opportunities and to analyze the possible impact of exporting concentrate on the value chain.