ARM approves R15.2bn redevelopment of Bokoni platinum mine in Limpopo

African Rainbow Minerals (ARM) has approved the redevelopment of its Bokoni platinum mine in Limpopo, committing R15.2bn over seven years to a mine that has defeated several previous owners.

The decision, announced on 23 July 2026, reverses ARM's move to place Bokoni on care and maintenance in September 2025 when PGM prices were depressed. ARM also approved a R753m restart of its Nkomati nickel open pit in Mpumalanga.

A different design

The new plan focuses on Bokoni's UG2 orebody and will be developed in phases using a hybrid of mechanised off-reef development and conventional stoping. A new 120,000t-a-month concentrator will be built to sit alongside the recently refurbished 60,000t-a-month plant, creating an integrated 180,000t-a-month operation. ARM expects production of 300,000oz to 450,000oz of PGMs a year by 2033.

Chief operating officer Jacques van der Bijl told investors the approved plan was a completely different business proposition from earlier attempts. The previous design relied on low-profile mechanised mining on the reef, which ARM found would dilute grades heavily because of the orebody's steep dip. Chief executive Philip Tobias said the company had returned to conventional stoping after characterising the orebody, and acknowledged that this carries some of the risks that troubled past operators, which ARM plans to manage with a heavier support regime and by mining at depth.

Why the bill has tripled

In 2022 ARM said it would spend R5.3bn over three years redeveloping Bokoni. The new estimate is almost three times that. Van der Bijl attributed the increase to the decision to build a new UG2 plant instead of converting the old Merensky concentrator, to double-digit capital cost inflation after the pandemic, and to a larger contingency.

Bokoni has a difficult history. Anglo American Platinum and Atlatsa Resources failed to make it pay before closing it in 2017, and ARM bought it in 2021 for R3.5bn. ARM deferred its first expansion plan in March 2024 as prices slumped.

Funding and context

ARM will fund the project mainly from its own cash, Bokoni's cash flow during ramp-up and external debt as required. It had estimated net cash of about R9.5bn at the end of June. Citi described the move as a prudent use of cash given higher PGM prices, according to Miningmx.

ARM said it had been encouraged by improved prices, continued automotive demand and the likelihood that South African production will decline. The approval stands out at a time when most South African producers have been reluctant to spend on expansion, and Bokoni's progress will test whether the industry can add ounces without repeating the cost overruns of the last cycle.

Sources

• Miningmx: ARM reopens platinum and nickel mines in projects worth R16bn, 23 Jul 2026
• Miningmx: Why, this time, ARM thinks Bokoni Platinum will fly, 31 Jul 2026

Photo: Burgersfort area on the Eastern Limb of the Bushveld Complex, the platinum belt that hosts Bokoni and neighbouring mines. Pavel Špindler, Wikimedia Commons, CC BY 3.0.