South Africa grants environmental authorization to Southern Palladium’s landmark PGM project

Australian mining company Southern Palladium has received an environmental authorization (EA) on its flagship Tier 1 Bengwenyama project from South Africa’s Department of Mineral and Petroleum Resources (DMPR). The license outlines rights on underground mining and related infrastructural activities on the project, marking a key milestone towards development. The palladium and rhodium-dominated deposit also contains significant amounts of other platinum group metals (PGMs), gold, copper, chrome, cobalt, silver and nickel.

The Bengwenyama project is located on the Eastern Limb of the Bushveld Igneous Complex in South Africa, which is home to some of the richest ore deposits on earth, including 70% of all known PGM resources. A Mining Right Application was submitted in late 2023, and an Environmental Impact Assessment (EIA) was initiated in July 2024. Following this, a Pre-Feasibility Study (PFS) was completed successfully later in the year, focusing on operations at the Nooitverwacht 324 KT and Eerstegeluk 327 KT farms, which are located adjacent to each other in Limpopo Province and cover an area of 5,280 hectares.

The DMPR, in a statement accompanying the awarding of the EA, recognized the thorough investigation of potential impacts on the part of the company, as well as the clear mitigation measures outlined. No objections were recorded during the public participation phase. The company’s Managing Director Johan Odendaal spoke following the EA approval, commenting that it “paves the way for the award of the Mining Right and reflects the strength of our permitting work, including a comprehensive environmental impact assessment (EIA) and a compliant public participation process.”

According to the terms of the EA, there is now a 20-day window for registered stakeholders to lodge any objections they may have, in which case they are to be reviewed by the Minister of Forestry, Fisheries and the Environment. The project will then be on track to obtain the Mining Right and advance to the execution phase. The Stage 1 plan was recently revised, and is targeting a single decline and truck haulage aiming at 80,000 tonnes per month in production volumes, with results of the study and updated PFS-level outputs set to be announced in June. The pre-existing Stage 2 plan, which outlines production of 200,000 tonnes per month, would then be initiated once Stage 1 has successfully entered into operation.

Southern Palladium is a mining company headquartered in Sydney, Australia and listed on the Australian Securities Exchange (ASX) and the Johannesburg Stock Exchange (JSE). Specializing in PGMs, its primary holding is its 70% share in the Bengwenyama project, which it owns through Miracle Upon Miracle Investments (MUM).

Source: miningweekly.com