Amongst a major revival in the global platinum group metals industry, JJ Joubert, Senior General Manager of Bokoni Platinum Mines, delves deeper into the company’s proud heritage, innovative mining technology, and commitments to community development.
MINING FOR THE FUTURE
As the northernmost province of South Africa (SA), the never-ending horizon of Limpopo holds a microcosmic collection of Earth’s most outstanding views, histories, creatures, and natural resources.
Indeed, jutting out into the vast, iridescent skies of the province is an eclectic topography of mountain ranges and passes, building a unique landscape that acts as the stepping stones of giants.
Surrounded by these sky-splitting wonders, humans and animals alike gaze upon the rudimentary drawings of those who walked the land thousands of years ago, stamped across many of the mountains’ caves.
A particularly exquisite example is the Makgabeng Plateau which has been pulled and pushed into a convoluted shape, creating iconic rock formations. This site acts as a natural canvas for primitive paintings of hunter-gatherers with bows and arrows as well as large, elementary animals, providing an insight into the stories of ancient Limpopo.
These magnificent but looming mountains gently transform into the rolling hills of the province’s many rural areas and world-renowned nature reserves.
In fact, Limpopo is home to Kruger National Park, the largest wildlife sanctuary in SA. This two million hectare (ha) nature reserve is a particularly special patch of land as it is home to some of the world’s most majestic creatures, including the ‘Big Five’.
The province has for centuries been the stomping ground of African lions, leopards, rhinoceroses, elephants, and cape buffaloes who serenely graze upon the emerald pastures of the area’s undisturbed bushvelds.
Yet, unbeknown to Limpopo’s range of magisterial beasts and roaming creatures, a complex flurry of activity occurs beneath the Earth’s crust. Indeed, nestled under the surface are some of Africa’s most bountiful natural resources and globally desired minerals.
Specifically, the Bokoni mine, one of the continent’s largest open pit mines, heralds some of Africa’s most expansive mining discoveries and is headed by world-renowned Bokoni Platinum Mines (BPM).
PLATINUM GROUP METALS’ RESURGENCE
Located on the eastern limb of the Bushveld Igneous Complex (BIC), BPM’s platinum mine sprawls across an impressive 15,000ha.
The pear-shaped complex covers an astonishing 66,000 square kilometres, reaching across several South African provinces including Mpumalanga, North West, and Gauteng, as well as Limpopo.
Contributing 75 percent of the world’s platinum and around 50 percent of total palladium, the BIC possesses an enviable collection of platinum group metals (PGMs), including platinum, palladium, osmium, iridium, rhodium, ruthenium, and much more.
The abundance of PGM resources across the complex has a long and storied history spanning over a century. Specifically, the BIC contains the largest ultramafic igneous rock formation on the planet, holding over one million cubic metres of igneous rocks formed over two million years ago.
Initial discoveries of the metal group occurred in 1924 when a collection of platinum nuggets was uncovered in a riverbed north of Pretoria. A further two platinum deposits were brought to light soon after, each at 100 metres in length. Due to the abundance of resources found, the area was named and crowned as one of Africa’s greatest PGM sites.
However, the South African PGM sector has faced substantial challenges in recent years, experiencing pressures caused by rising operating costs and falling market prices, making some of the country’s largest platinum mines increasingly difficult to operate.
However, the industry is currently experiencing a major turning point, leading to a resurgence in PGM demand. After decades of growth in the international electric vehicles (EVs) market, manufacturers are looking at other, more reliable options.
As a result, hybrid electric vehicles (HEVs) are an increasingly popular alternative as they provide greater range and power and are becoming a more cost-effective option, whilst still allowing motorists to reduce their environmental impact. As a result, the amount of HEVs sold in 2023 increased by 18 percent compared to the corresponding quarter the year before.
Likewise dissimilar to EVs, the catalytic converter technology used in HEVs requires a substantial level of PGMs – an even greater amount than is typically used in conventional internal combustion engines (ICEs) found in motor vehicles, once again contributing to the uptick in demand.
Consequently, with reports indicating that the rise in the use of HEVs could last until 2030 or even longer, the recent resurgence in the global PGM market could be set to last, which bodes well for many mining entities that are currently witnessing a major revival in prices and mine site longevity.
Even though BPM has been no stranger to the industry’s previous stagnation, the company has planned accordingly to ensure that it sustains its ongoing success and capitalises on growing hybrid technology, maintaining its position as SA’s second-largest PGM resource and firmly establishing its presence in the diverse sector.
“Although we believe it will recover, the PGM market is under extreme pressure. Therefore, we have slowed down our ramp-up and expansion but have also positioned ourselves well on the cost curve to exploit improvement in the prices,” introduces JJ Joubert, Senior General Manager.
As such, BPM is well-positioned to capitalise on the market’s recovery in the face of changing global demands and contribute to the long-term sustainability of the industry in SA.
A NEW CHAPTER
BPM’s journey to its present enviable success and reputation is marked by transformation and innovation.
Despite previously facing financial challenges that resulted in a six-year period of care and maintenance, the company’s future took a positive turn in September 2022 when Africa Rainbow Minerals (ARM) acquired the mines from Anglo American Platinum and Atlatsa Resources, marking a new chapter for BPM.
Today, ARM is the sole owner of the company, granting it a vast network of resources and market opportunities, particularly given the fact ARM stands as the leading South African mining and minerals business with operations across the country as well as in Malaysia.
Established 30 years ago, ARM has experienced a unique journey, leveraging both joint ventures and stakeholders to facilitate enhanced mining projects. Through four divisions, the organisation extracts and beneficiates iron ore, manganese ore, nickel, coal, and PGMs in SA, making it a major player in the country’s mining landscape.
Despite a significant decrease in PGM prices over the past five to 10 years – causing many other platinum organisations to suffer unprofitable production – ARM strongly believes in the prosperity of BPM and its investment attractiveness in an industry that is experiencing an upward trajectory.
Since becoming a part of ARM’s extensive and diversified portfolio over two years ago, BPM has, in turn, become a valuable asset for the organisation and its platinum discovery and mining activities.
“BPM enhances ARM’s position in the global mining sector, particularly in the platinum market,” Joubert insights.
“It strengthens the organisation’s competitive edge and market presence, attracting potential investors and partners.”
The PGM orebodies mined by BPM complement ARM’s platinum division in particular by reducing reliance on a single commodity and balancing the company’s exposure to any market fluctuations, which is particularly critical given the historical turbulence of the African PGM sector.
This makes ARM’s position even more lucrative, as BPM’s operations will contribute a significant revenue stream through the production and sale of other PGMs, thus helping to support the financial health of ARM and allowing it to invest in other projects and strategic initiatives.
SUPPORTING ARM’S CORPORATE GOVERNANCE
On top of the projected market prosperity, the successful management of BPM positively impacts ARM’s reputation and relationships with local communities, regulatory bodies, and other stakeholders.
“ARM is fully dedicated to BPM’s revival in a way that collaborates with local communities,” expands Joubert.
Given ARM’s extensive presence across SA, permeating into many provinces alongside Limpopo including Northern Cape, North West, Mpumalanga, KwaZulu-Natal, as well as Sarawak in Malaysia, successful community engagement and environmentally conscious operations are increasingly important to the organisation.
So much so, ARM’s economic, social, and governance (ESG) practices infiltrate every aspect of the company’s operations as it is guided by ethical leadership that paves the way for integrity and respect across all mining activities.
Indeed, as an industry-leading business, ARM has a deep understanding of the impacts it has on the world around it and therefore strives to embrace opportunities to make a positive contribution to the growth and development surrounding societies.
“Positive community engagement and responsible mining practices bolster ARM’s social license to operate and contribute to its overall sustainability,” enlightens Joubert.
As a continuation of this, the company invested ZAR124 million in corporate social responsibility (CSR) in the 2022 financial year, and a further ZAR371 million in skills development and training.
This financial input is a testament to ARM’s dedication to fostering positive relationships across its local communities and amongst staff.
Meanwhile, through a highly comprehensive sustainable development model, the company explicitly acknowledges that good corporate governance and ample environmental stewardship are also conducive to creating strong relationships with shareholders and in turn generating greater socioeconomic value for the community.
ARM’s commitment to transformation and recognition of the role it plays in socioeconomic and people development is demonstrated by the company’s dedication to facilitating equal access to business opportunities.
Accordingly, ARM and the many organisations under its ownership, such as BPM, are acting in accordance with the Mineral and Petroleum Resources Development Act 28 of 2002, which guarantees equitable access to and the sustainable development of SA’s mineral and petroleum resources.
The organisation’s primary activities – which include mining, crushing, milling, processing, and beneficiating metals and minerals – present highly adverse working conditions.
Therefore, in recognition of industry legislation, ARM implements stringent hazard identification and risk assessment criteria. As a result, the company and its various acquisitions can ensure that its operations do not harm the planet or its people.
By adopting a more holistic view of success, ARM, and BPM by extension, are ensuring a long road ahead for corporate sustainability in South African PGM mining.
BOKONI PLATINUM MINES PARTNERS
